KARACHI (MNN); Muttahida Qaumi Movement-Pakistan (MQM-P) leader Mustafa Kamal on Thursday urged the federal government to declare Karachi a federal territory by designating it as Pakistan’s “financial capital”.
His remarks came in the wake of the deadly Gul Plaza fire, which has renewed debate among lawmakers over governance reforms in the metropolis, particularly the effectiveness of the local government system.
Addressing a press conference, Kamal called on the federal government to invoke Articles 148 and 149 of the Constitution and assume greater administrative control over Karachi by declaring it the country’s financial capital.
Article 148 outlines the obligations of the federation and provinces, while Article 149 empowers the federal government to issue directives to provincial governments in specific circumstances, including to prevent threats to peace, stability or economic life.
Kamal argued that given Karachi’s economic importance, the city should not remain under the current provincial administration, referring to the Pakistan Peoples Party-led government in Sindh.
“We already have an administrative capital, but Karachi should be made the financial capital,” he said, adding that the issue of creating new provinces could be taken up at a later stage.
He claimed that a city which drives the national economy could not be left under what he described as an administration practicing “democratic terrorism”. According to Kamal, the existing governance structure was disenfranchising residents and creating resentment against the state, a situation he warned could benefit Pakistan’s adversaries.
PPP Accused of Misusing 18th Amendment
The MQM-P leader also accused the PPP of taking what he called “unfair advantage” of the 18th Constitutional Amendment, alleging that it was being used against the citizens of Karachi.
“Put an end to this 18th Amendment drama,” Kamal said, while reiterating his party’s long-standing demand for strengthening local governments.
Referring to deliberations ahead of the 27th Constitutional Amendment passed in November last year, Kamal said that even the prime minister had supported local government reforms.
He claimed that cabinet members including Khawaja Asif, Ahsan Iqbal, Rana Tanveer and Rana Sanaullah had backed the proposal, but the PPP had opposed it and threatened to withhold support for other clauses, creating a deadlock.
MQM-P has repeatedly called for empowering local governments and had linked its support for the 26th and 27th constitutional amendments to changes in Article 140A. After those demands were not accepted, the party said it would now push for its proposals through a proposed 28th constitutional amendment.
Calls for local government reforms were also heard in the National Assembly earlier this week, where lawmakers discussed the Gul Plaza tragedy. MQM-P’s Farooq Sattar called for creating additional administrative units, while PML-N leader Khawaja Asif also supported stronger local governments for improved urban management.
Sindh Minister Criticises MQM-P for Politicising Gul Plaza Fire
Meanwhile, Sindh Senior Minister Sharjeel Inam Memon criticised MQM-P for what he termed the politicisation of the Gul Plaza fire.
Speaking at a press conference in Karachi, Memon said certain political parties were using the tragedy for political purposes, adding that the Sindh government was exercising restraint.
Without naming Kamal directly, he questioned whether scrapping the 18th Amendment or placing Karachi under federal control would prevent such incidents.
Memon said the provincial government was not shirking its responsibility and acknowledged that protecting lives and property was a core duty of the state.
He accused parties criticising the government of having a violent past in the city, alleging that some of them had previously been involved in serious crimes.
Saying he was compelled to respond to what he described as serious allegations, Memon referred to past incidents, including the Baldia factory fire and violence on May 12, 2007, questioning the moral authority of those making accusations.
He also played old video clips of Kamal, in which the MQM-P leader could be heard criticising his current party leadership and coalition partners.
Memon questioned why Kamal, who is currently serving as federal health minister, had not visited Gul Plaza or offered assistance after the incident.
Responding to questions, the minister said he could not understand the purpose behind recent statements by Kamal and PML-N’s Khawaja Asif.
On the Gul Plaza tragedy, Memon said the Sindh government was focused on returning the remains of the victims to their families and supporting those affected.
He said there could be no compensation for the loss of life, but assured that the government stood with the bereaved families and shopkeepers during the difficult period.
Out of around 1,200 shops affected by the fire, Memon said the government would not differentiate between legal and later-built structures, adding that all affected traders would be assisted in rebuilding their livelihoods.
He said the provincial government was also considering providing interest-free loans to affected shop owners.
Memon disclosed that Rescue 1122 had received 1,094 fire-related reports across Karachi in 2025, while 84 incidents had already been reported this month.
He said investigations would determine the causes of the Gul Plaza fire and assess rescue efforts, adding that any negligence found would be dealt with accordingly.
