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Is Karachi carrying the economic weight of Pakistan on its shoulders?

MenInG

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Saw this picture and wanted to have a (civilized) debate on this.

b583570e-725d-426b-bb8c-8ba6dfc979b7.jpg
 
Not sure where this myth of Karachi carrying Pakistan economy comes from considering agriculture is the backbone of Pakistan economy. Unless it is all grown in Karachi.

20228536_1328041767304527_3203871782589259794_n.jpg
 
Not sure where this myth of Karachi carrying Pakistan economy comes from considering agriculture is the backbone of Pakistan economy. Unless it is all grown in Karachi.

View attachment 114052

Whered you get this from? Anything that spells "Dollar" Doller cannot be that credible. lol


Just saying!
 

This chart looks much more in line with what I have personally found on the internet. I am by no means n expert on this but I also keep hearing from my Karachiite friends that their city is basically running the whole country and all others are just leeching off of them.

This information does seem to kind of bust that myth!
 
Whered you get this from? Anything that spells "Dollar" Doller cannot be that credible. lol


Just saying!


https://ipr.org.pk/wp-content/uploads/2016/04/GROWTH-OF-PROVINCIAL-ECONOMICS-.pdf

3. SIZE AND GROWTH OF PROVINCES
The respective size of the Provinces in the initial year, 1999-2000, and in the latest year, 2014-15, is given
in Table 3. As expected, Punjab is the largest provincial economy with a share of just over 54% in 2014-15.
However, the share of this Province has fallen somewhat since 1999-2000
 
https://www.usaid.gov/news-information/fact-sheets/provincial-fact-sheet-punjab

Doesn't get more credible than this. All a myth.

HIGHLIGHT
Punjab is home to more than half of the country’s total population, and the largest number of youth in the country. The province contributes 55 percent to the national income, employs 61 percent of the national workforce, exports 51 percent of the national exports, and produces more than 70 percent of Pakistan’s annual grain production. Simultaneously, Punjab faces low literacy, unemployment, extremism, and low per-capita income. To address these issues – particularly in South Punjab – USAID is providing support in the agriculture, economic growth, education, health, governance, and energy sectors. USAID programming promotes the inclusion of women, youth, and underserved segments of the society. In addition to benefiting from programs that work exclusively in Punjab, provincial communities also benefit from USAID programs implemented on a national scale.
 
So what is Karachi’s overall contribution to our economy? Any numbers from credible sources on that?
 
that came about from tax receipts, given virtually all exports are routed out of karachi, and numerous businesses which operate all throughout Pakistan are headquartered in Karachi it has a significantly larger tax base than the rest of Pakistan.

https://download1.fbr.gov.pk/Docs/202112311512724587AnnualPerformanceReport2020-21.pdf
page 26 and 27 is the geographic breakdown

works out at about 60% of national tax receipts of top of my head.
 
Punjab is.

Pakistan is a developing country and every developing country's backbone is the agriculture sector. All the fertile land that exists is in punjab.

Karachi operates in the manufacturing side. Alot of businesses that operate in pakistan they have their headquaters located in karachi.

Karachites create this myth or are often made to believe into this...

To be honest, no one cares which city provides the most as they all come under the umbrella of pakistan.

If US economy is derived from New York or india is genrrated from mumbai, they dont start arguing that their falani city contibutes more and is towing the country..

Such arguments only creates divide. In every country you will have a city that does more.

Karachi has the ports, thus when it comes to tariff generation offcourse the numbers would be high. Yet the GDP is higher in punjab.

Anyways, when cpec is operational with gwader and exports and imports are routed from there the numbers from there would increase. That wont mean baluchitan is doing something right...
 
Karachi is the main source where the taxes are collected which is what is used to run country and army

Just check how much of tax % wise is sourced from a single city and the answer is for all to see
 
Karachites often use this argument as if they are doing rest of the country some favour.

The fact is that when there is a single port city catering for 220 million people, of course the country will depend on that city.

Once Gawadar establishes itself as a major port city, dependency on Karachi will decrease.
 
Not an expert on this debate but Karachi's population is roughly 20 odd million. Punjab has more than 5x that. For the amount of weight Karachi carries, don't you think it has been a bit neglected in some regards? Also I think it's important to separate Sindh from Karachi when talking about this matter.
 
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Punjab is carrying Pakistan. I'm proud of my Gujranwala roots and one day this city will overtake every city in its province as well.
 
Punjab is carrying Pakistan. I'm proud of my Gujranwala roots and one day this city will overtake every city in its province as well.

Lol Punjab isn’t carrying Pakistan. It’s a burden if anything.

Despite being the so called agricultural capital of Pakistan it is a net importer of wheat and other products
 
Lol Punjab isn’t carrying Pakistan. It’s a burden if anything.

Despite being the so called agricultural capital of Pakistan it is a net importer of wheat and other products

What about Lollywood?
 
The best days of Karachi will return . An awesome place in the 60's and 70's before it was turned in to a dump by the likes of Altaf Hussain. It is not possible for Pakistan to be successful without our major city thriving.

Karachites too need to understand it was Pakistan that made their city great in the first place. Sab se pehle Pakistan. :pkflag
 
Not an expert on this debate but Karachi's population is roughly 20 odd million. Punjab has more than 5x that. For the amount of weight Karachi carries, don't you think it has been a bit neglected in some regards? Also I think it's important to separate Sindh from Karachi when talking about this matter.

It’s definitely neglected, but the issue is the corruption of everybody involved. There is a certain section of Karachiites who always want to look at this from the ethnic/linguistic angle.

When PML-N is in power, they spend a lot towards the improvement and beautification of Lahore, whereas when PPP or MQM has control over the city, it doesn’t seem they were able to do much. It’s still a festering wound.

Karachi, and it’s people.. are unfortunately just pawns in the dirty political landscape and they are suffering.

I would like to see all the infrastructure and development issues resolved in the city and I hope IK does justice.
 
The Karachi Metropolitan Corporation (KMC) hardly earns Rs10.7 million annually to run the affairs of a port city with more than 16 million people.

The annual income of the KMC is too low to return the metropolis to its glory days.

The municipal tax collection, for example, was Rs1.7 million in 1918 for about 200,000 people and in 2021, its just Rs10.7 million for over 16 million people.

"We need to collect taxes - municipal and property," said Karachi Administrator Barrister Murtaza Wahab. "We cannot rely [forever] on borrowing money from the provincial government," he added.

Wahab was speaking at an event called 'How the City of Karachi Works -Past, Present and Future'. The function was organised by CLICK, a nonprofit organisation. "Karachi cannot be managed properly without money."

He said that the KMC has its own resource generating avenues, including 11 petrol pumps, 61 commercial markets and 245 huts. "They do not produce enough revenue," he said. "For example, we get only Rs61,000 annually from the huts."

Wahab said that city's 20 major thoroughfares, including Khalid Bin Waleed Road and Tariq Road, were commercialised in 2003. He said that small houses had been replaced with giant buildings. "This has created problems," he revealed.

To solve the growing issues, Wahab said the idea of collecting municipal tax through K-Electric, the power supplying company, was initiated. He said that K-Electric distributes three million bills monthly.

He said the aim was to collect Rs200 from all these people. "We could collect Rs70.20 million monthly."

Appreciating public-private partnerships of the past, the administrator said the city progressed and looked beautiful because people of Karachi had a sense of ownership. "This is our city. This is our children's city. We have to own it."

Metropolitan Commissioner Syed Afzal Zaidi said that water shortage is a serious issue of Karachi. He added transport and sewerage were also some major issues citizens had been facing for decades.

"It is a wrong perception that Karachi was built after 1947," Zaidi said. "The progress started when the Talpur era was about to end," he maintained.

Agreeing to Zaidi, Wahab said that water desalination plants were necessary for the city. He stressed that some of the locations, where plants could be set up, have already been identified. "The Sindh, federal and city governments have to address this issue," Wahab suggested.

The event was attended by a large number of students from different colleges and universities of Karachi, prominent citizens and representatives of civil society.

"Citizens should cooperate with the KMC. Karachi has been badly branded in the past, even though the city is not so bad," he added.

LG system

He said that when the time came for new delimitations in 2021, the Local Government Act was reformed and all political parties and stakeholders were consulted for this purpose.

Wahab said that in the new system, local bodies had been given full powers to solve the problems of citizens and improve their standard of living.

He said that education and health are not municipal, but provincial functions so it was decided that the provincial government would take care of these matters.

The administrator said that the performance of the provincial government is better than that of KMC when compared to medical institutions.

Published in The Express Tribune, January 14th, 2022.

https://tribune.com.pk/story/2338606/kmc-doesnt-earn-enough-to-run-karachi
 
Some food for thought
==

Pakistan has eight cities with populations of more than a million souls, as per the last census. Punjab has five of these cities, Sindh two and Khyber-Pakhtunkhwa one. The way we prepare and maintain these engines of growth to compete in the global economy will determine the future of our economy.

Karachi, with roughly 10% of country’s population, contributes to more than 50% of its export earnings, around 56% to the Federal revenues and 96% of Sindh’s revenues. Karachi pays in Sales Tax on Services almost equal to the Sales Tax on Services paid by the entire province of Punjab.

World Bank in its report ‘Transforming Karachi into a liveable and competitive megacity (2017)’ made out a case that it will take Karachi around $10 billion of capital investment to close the infrastructure gaps in the city.

“… with 45 residents competing for one bus seat, travel within the city is difficult. Many households rely on private vendors who sell water from tankers at high prices. The sewage network has not been well maintained since the 1960s. Industrial waste, which contains hazardous materials and heavy oils, is dumped directly into the sea untreated. Of the 12,000 tons of municipal solid waste generated each day, 60% never reaches a dumpsite.” Karachi’s pattern of growth appears to be on the brink of an unsustainable path.

Federal and provincial governments heeded the report only after heavy rains in 2020 inundated Karachi when both the governments fiercely contended that they would contribute more in the joint package of Rs1100 billion for the Karachi Transformation Plan which was to be implemented in three years. The progress is far behind the promised schedule after eighteen months.

But then why should the federal and provincial governments make special provisions for Karachi’s developmental gaps?

Provinces became mega-rich after the 2009 NFC award, which devolved fiscal authority of collection of Sales Tax on Services and unprecedentedly higher distribution of funds from federal divisible pool in their favour. Sindh’s revenues grew 815% in past 15 years from Rs178 billion in 2007-08 to Rs1,452 billion in the Budget 2021-22. This prosperity should have turned its capital city into a resourceful metropolis rather than becoming one of the least liveable cities of the world.

Karachi’s share in transfers from the provincial budget fell from 20% (Rs37 billion) in 2007-08 to a meagre 3% (Rs38 billion) in 2020-21. Had the transfer percentage of 2007-08 maintained, Karachi would have received around Rs244 billion in 2020-21. Around 85% of Karachi’s dues are being regularly withheld since 2009 when the Provincial Finance Commission was turned dysfunctional.

Similarly the share of 6.6% in Federal PSDP that Karachi had in 2007-08 dropped to just 2.1% in 2021-22. In very conservative estimates, these cuts by the provincial and federal governments deprived Karachi of Rs949 billion since 2009 (Rs663 billion by the provincial government and Rs286 billion by the federal government) almost equal to the cost of infrastructure gaps found in the World Bank report, rather more in net present value. The largesse of Karachi Transformation Plan is nothing but just a promise to return back part of the funds of the city withheld by both the governments.

This imprudent behaviour towards Karachi, our largest growth engine, is not in the interest of the country if we have any plans towards achieving economic growth and prosperity. Keeping Karachi continuously on the verge of collapse is also not good for the unity and peace of the province. How can a province protect its claims on the devolved rights under the Constitution and share in NFC award, when itself in violation of Article 140A of the Constitution which makes it mandatory to “devolve political, administrative and financial responsibility and authority to the elected representatives of the local governments”.

The equitable distribution of the Provincial resources to the districts must be revived through a new Provincial Finance Commission Award, pending since 2009. Karachi should be getting Rs250-300 billion as direct transfers annually instead of Rs38 billion received last year, Badin Rs18 billion as against 1.6 billion and Umerkot Rs20 billion as against less than a billion.

There can’t be any justification for the garbage collection contracts to be decided by the Chief Minister. This over-centralisation is as unreasonable as the over-devolution by the Musharraf regime. Municipal functions must be performed by the City governments such as Water, Sanitation (Sewerage and Solid Waste Management), Municipal Taxation & Regulation, Master Plan and Building Control, City Development (KDA, LDA, etc), City Transport and Mass Transit. Property and Motor Vehicle Taxes also need to be devolved to the districts.

Let our cities, our engines of growth, become vibrant and competitive — contributing to their fullest potential towards the growth of our country.

Published in The Express Tribune, January 18th, 2022.

https://tribune.com.pk/story/2339144/let-karachi-live-again
 
There is no question about Karachi being neglected, and treated unfairly. Being our economic center, I think it needs a vastly improved budget and development strategy.

Hope the current government does more.
 
A protest by the fisherfolk community after failed talks with the Maritime Affairs Ministry has resulted in a blockade at the Karachi port, bringing the import and export activities at the port to a halt.

Express News reported that the fisher folks blocked the harbour on Tuesday afternoon with their launches after a meeting between the ministry officials and the fisher folks ended in vain.

Due to the blockade, ships cannot leave or enter the harbour, resulting in damages to the national exchequer, the report said, adding that not a single ship has been docked at the port since Wednesday afternoon.

On Wednesday, the arrival of at least seven ships to the port was postponed whereas three ships could not leave the harbour. Another ship could not be berthed at a different location due to the blockade. Today, about nine ships are expected to leave the harbour but may not exit the port due to the protest.

Sources said, “The ships containing petroleum products are parked in the open sea due to the protest, whereas the wheat shipments are also being delayed due to the blockade.”

According to them, the protest has also affected cement exports. The demurrage charges are also being increased due to the changes in the schedule of the ships, they added.

Failed talks

A day earlier, a dialogue between the representatives of the fisherfolk community and the government officials, including PM’s aide Mehmood Molvi, at the Karachi Port Trust (KPT) head office hit a snag. The fisherfolk representatives walked out of the meeting.

Molvi said the closure of the channel due to the protest has so far disrupted the movement of eight ships. He added the talks will resume today and to resolve the issues faced by the fisher community, the federal government is in touch with Balochistan and Sindh governments as well.

Meanwhile, Sindh Trawler Owners Fishermen Association (STOFA) postponed its protest, urging the protesting fisherfolks to end the protest and take their launches to the sea.
 
Karachi has turned out to be the world's fourth largest polluted city as its air quality index has surged to an unhealthy level of 193, showing utter negligence of the federal and Sindh governments towards environmental reforms, according to a new investigative report released on Sunday.

PM2.5 concentration, as per IQAir organisation report, in Karachi has been recorded 11.8 times higher this month which is above the WHO annual air quality guideline value.

This clearly proves that the federal and Sindh governments’ claims of making huge investments for improving the environment and public health in the city are nothing but disinformation and misinformation, says the investigation report.

The investigation finds that air pollution in Karachi contains solid and liquid particles, and certain gases in the air. The major polluters are transport and industrial emissions followed by burning of garbage, emissions from refrigerators, generators, flying of dust, and stoves used in houses and hotels.

The investigation says that all types of forests, including mangroves along Sindh’s coastline, which used to help absorb carbon dioxide and clean air in Karachi, have been hacked to an alarming level.

Karachi’s present mangroves forest cover is 50,000 hectares. In the last 50 years, Karachi has lost 10,000 hectares of mangrove forest due to encroachments, commercialisation and infrastructure development.

A Sindh Environmental Protection Agency report says that the important ecosystems in Sindh, such as mangroves, have come under extreme pressure due to seawater encroachment and deforestation. There has been mass depletion of mangrove forests in the area due to illegal logging, irrigation and untreated industrial waste.

The report says that only 130,000 hectares of mangroves of the 600,000 hectares that existed at the start of the 20th century are now left. The total land area of Sindh is 34.84 million out of which 8 per cent is forest cover.

According to international standard, a country should have at least 25 per cent of its total land under forest cover to tackle environmental degradation including air pollution.

The new annual economic survey of Pakistan released in June 2021 says that Pakistan is a forest deficient country as it has 5.01 per cent area under its forest cover.

According to WHO, air pollution is one of the biggest environmental threats to human health, alongside climate change. From smog hanging over cities to smoke inside the home, air pollution poses a major threat to health. It causes diseases including heart ailments, strokes, chronic obstructive pulmonary diseases, cancer and pneumonia. Seven million people die globally each year due to exposure to ambient and household air pollution.

Air pollution is a complex mixture of solid particles, liquid droplets, as well as gases. It can come from many sources such as household fuel burning, industrial chimneys, traffic exhausts, power generation, open burning of waste, agricultural practices, desert dust and many other sources.

Air pollutants measured include PM2.5 and PM10 (particles with an aerodynamic diameter of equal or less than 2.5, also called fine, and 10 micrometre respectively), ozone (O3), nitrogen dioxide (NO2), carbon monoxide (CO) and sulfur dioxide (SO2).

Fine particulate matter (PM2.5) can penetrate through the lungs and further enter the body through the bloodstream, affecting all major organs.

Exposure to PM2.5 can cause diseases both to the cardiovascular and respiratory system, provoking stroke, lung cancer and chronic obstructive pulmonary disease.

New research has also shown an association between prenatal exposure to high levels of air pollution and developmental delay at the age of three, as well as psychological and behavioural problems later on, including symptoms of attention deficit, hyperactivity disorder, anxiety and depression.

Air pollution is a threat to health in all countries, but it hits people in low-and middle-income countries the hardest,” WHO Director General Tedros Adhanom Ghebreyesus said.

In an interview, National Forum for Environment and Health President Naeem Qureshi said that air pollution was continuously rising in Karachi, mainly due to emissions from transport, followed by industrial emissions and burning of garbage. Transport is creating 70% air pollution in the city.

“The federal and provincial governments have formulated environment policies but they are not being implemented in true spirit, as a result, there is no control on pollution in Karachi,” he said.

Qureshi maintained that certification system of vehicles in the city was bogus which needed to be improved.
There should be effective checking of smoke-emitting vehicles to reduce harmful emissions, he said, adding that mass transit be launched in Karachi at the earliest besides launching electrical vehicles.

Separately, Pakistan Medical Association Secretary General SM Qaisar Sajjad noted that Karachi had turned out to be the world’s fourth largest air polluting city.

“Air pollution is a slow poison and can even take life in severe conditions,” he said, observing that air pollution contributes to asthma, nose elegy, sore throat, and heart diseases.

The PMA president stressed the need to regulate transport and industrial systems, and cease all smoke-emitting and dilapidated vehicles which cause air pollution.

https://tribune.com.pk/story/2345600/karachi-worlds-fourth-largest-polluted-city-report
 
How are things fairing in karachi? especially with the floods ? any developed occuring? - how long of a set back do you think it will take- rough estimate
 
This chart looks much more in line with what I have personally found on the internet. I am by no means n expert on this but I also keep hearing from my Karachiite friends that their city is basically running the whole country and all others are just leeching off of them.

This information does seem to kind of bust that myth!

This is kinda poor deduction on your part. Share of gdp isn’t the indicator for this. It’s share of tax revenue collected. Karachi collects more than the whole province of Punjab
 
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