‘Budget-making, resource allocation system rely on outdated census figures’

HYDERABAD: President Hyderabad Chamber of Small Traders and Small Industry, Muhammad Saleem Memon, has stated that Pakistan’s budget-making and resource allocation system still largely relies on outdated census figures, assumptions, and unreliable statistics.

As a result, development schemes and essential public services are being planned and funded on the basis of data that does not accurately reflect ground realities, with urban areas bearing the brunt of this imbalance.

He observed that the actual population of an industrial and commercial city like Hyderabad is significantly higher than what is recorded in official statistics. A substantial segment of the rural population has permanently settled in urban centres in search of employment opportunities.

However, due to their rural domiciles, they are not counted within urban population data for budgetary purposes, despite utilizing all urban facilities and services. This discrepancy places increasing pressure on already strained urban resources and infrastructure.

The Chamber President emphasized that the failure to allocate resources to urban Sindh, particularly Hyderabad, in proportion to its true population and contribution to the national economy represents a critical policy challenge. He stressed the urgent need for serious attention to this matter to ensure effective resolution of urban issues and the promotion of balanced development.

In this regard, he informed that he has sent a comprehensive and detailed letter to the Federal Minister for Finance and Revenue, urging that budget formulation and national policymaking be based on authentic, realistic, and ground-based data.

Saleem Memon further stated that budget preparation and development planning can only become truly effective if they are structured on the basis of accurate census data, actual urban population figures, agricultural activity, land-use patterns, and reliable economic indicators.

While acknowledging that the recent digital census and agricultural census are positive steps, he pointed out that there is still a pressing need to further improve the comprehensiveness and accuracy of data relating to urban populations and their resource requirements.

He noted that urban centres of Sindh, particularly Hyderabad, are playing a significant role in the national economy due to rapid population growth, expanding industry, trade, and services sectors. However, budgetary allocations often fail to match their actual needs, resulting in mounting pressure on basic amenities, infrastructure, and public services.

The Chamber President also highlighted that rapid population growth and climate change will pose major challenges to Pakistan’s economy, food security, water resources, energy supply, public health, and urban systems in the coming years. He stressed that to effectively address these emerging challenges, budget formulation and national planning must be rooted in forward-looking strategies, scientific foundations, and accurate data.

He urged the government to integrate modern technologies such as GPS, GIS, satellite data, remote sensing, and real-time field surveys into the processes of budgeting and development planning to ensure greater transparency, fairness, and efficiency in resource distribution.

Concluding, Saleem Memon stated that his letter also proposed the establishment of a comprehensive national data framework and an independent data verification mechanism to ensure that policy decisions across all sectors are made on the basis of credible information, thereby strengthening public trust.

He appealed to both federal and provincial governments to allocate fair resources to urban areas, especially major cities of Sindh like Hyderabad, in accordance with their actual population, economic contribution, and future needs, so as to ensure balanced development, improved public services, and sustainable economic stability.

Copyright Business Recorder, 2026