Mayor Karachi Murtaza Wahab has presented the annual financial budget of the Karachi Metropolitan Corporation (KMC) for the fiscal year 2025-26. The budget reflects a surplus of Rs146.2 million, with total estimated revenue set at Rs55.28 billion and total expenditures projected at Rs55.13 billion.
While presenting his third consecutive budget, Murtaza Wahab stated that Rs31.59 billion will be spent on salaries and administrative expenses. An allocation of Rs3.41 billion has been made for maintenance and unforeseen expenditures, while over Rs20 billion has been reserved for developmental projects. Key budget allocations include:
- Health & Medical Facilities: Rs7.29 billion
- World Bank-funded CLICK Project: Rs7.43 billion
- District ADP Schemes: Rs9 billion
- Pensions & Retired Employees: Rs13.41 billion
- Municipal Services: Rs5.3 billion
- Parks & Horticulture: Rs1.77 billion
- IT Infrastructure & Services: Rs98.5 million
Estimated current recoveries expected to reach Rs 44.14 billion. KMC also plans to execute Rs300 million worth of development work using its resources. Under the District Annual Development Fund, Rs 4.63 billion will be spent on road improvements.
Expected Recoveries from K-Electric:
According to the budget document, KMC expects to receive:
- Rs3 billion through Municipal Utility Charges & Taxes (MUCT) via K-Electric
- Rs860 million from land lease and other dues from K-Electric
- Rs270 million from anti-encroachment operations
- Rs150 million from informal settlements (katchi abadis)
- Rs119.1 million from charged parking
- Rs340 million from municipal services
During the budget speech, Wahab noted that MUCT collection through K-Electric had resumed after a long pause. So far, Rs1.7 billion has been collected this year. For the next fiscal year, KMC expects to recover Rs3–3.5 billion through MUCT, which will help the Corporation achieve financial independence and invest in Karachi’s infrastructure development.
Interest Payments and Legal Expenses:
Rs611.6 million have been allocated for interest payments on loans and other liabilities, while Rs254.6 million will go toward legal case follow-ups. Over Rs2 billion set aside for the Revenue Department, anti-encroachment operations, charged parking, and enforcement.
Employee Payroll to Be Shifted to SAP:
According to the budget, employee salaries have been integrated into the World Bank’s SAP project this year. In the next phase, pensions for retired employees will also be transferred to SAP, ensuring timely payments on the first of every month and eliminating the possibility of data manipulation in staff records.
Major Announcements from Murtaza Wahab’s Budget Speech:
- Rs200 million allocated for the development of key roads
- Rs150 million for cleaning stormwater drains
- Rs350 million for the improvement of KMC parks
- Rs120 million for district-wide improvements to roads, footpaths, sewerage lines, bridges, intersections, etc.
- Rs650 million for the purchase of modern medical and electrical equipment for KMC hospitals
- Rs4.33 billion for road infrastructure improvements under district ADP
- Rs480 million for 39 park development schemes
- Rs250 million for 20 municipal service schemes
- Rs500 million to be spent on special development projects through MUCT revenue
- Rs290 million allocated to Union Councils, providing Rs100,000 per UC per month
- Rs220 million for solarization of KMC buildings
- Rs50 million each for:
- Urban forest at Gutter Baghicha
- Kidney Hill Park
- Shelter homes for drug addicts
- Construction of a park adjacent to Chaukhandi graveyard
 for the fiscal year 2025-26. The budget reflects a surplus of Rs146.2 million, with total estimated revenue set at Rs55.28 billion and total expenditures projected at Rs55.13 billion.){kind=link}