Due to low recovery of outstanding dues from its consumers, the financial crunch at Karachi Water and Sewerage Board (KWSB) is likely to worsen in the coming months and the water utility even won’t have cash to run routine affairs or pay the salaries of its employees, Pakistan Today has learnt. Well-placed sources in the water utility told Pakistan Today that the KWSB does not have enough funds even to clear the electricity dues of the Karachi Electric Supply Company (KESC) that have reached billions of rupees, as it has been unable to recover its own dues from bulk and government consumers.
The KWSB had recently approached the federal government for a bailout package of Rs 12 billion to clear its electricity bills, but the request was turned down by the Centre, directing the water utility to instead enhance its recovery mechanism, the sources disclosed.
The water utility is neither in a position to pay its monthly electricity bill of Rs 370 million nor clear the arrears of Rs 12 billion. However, the KWSB is paying a partial payment of Rs 50 million every month to the KESC. “The KESC was approached for rationalising tariff structure and withdrawal of federal and provincial levies and charges but in vain.”
The financial problems at KWSB stem from a number of other causes, including poor billing and payment processes, irrational tariff that does not enable cost recovery and a variety of operational and maintenance inefficiencies.
The KWSB often launches recovery campaigns against bulk consumers; however, the management has not been able to muster enough courage to recover outstanding dues worth Rs 33 billion from government offices – Rs 24 million of which have to be paid by the Governor’s House and the Chief Minister’s House alone.
According to the KWSB defaulters’ list available with Pakistan Today, federal and provincial government and the city administration owe KWSB Rs 33 billion in arrears for the past couple of years. The Sindh Governor’s House has to pay off Rs 23.4 million in dues to the KWSB while the Chief Minister’s House owes Rs 0.774 million. The Sindh Assembly has to clear dues amounting to Rs 8.735 million. Sindh’s Transport Department has to pay KWSB Rs 1.5 million, Small Industries Corporation Rs 1.7 million, Printing Press Rs 0.29 million, Population Welfare Department Rs 128 million, Welfare Department Rs 27.4 million, Revenue Department Rs 17.4 million, Public Health Engineering Department Rs 182 million, Law Department Rs 38.9 million, Education Department Rs 280 million, Home Department Rs 300 million, Health Department Rs 130 million and Livestock Department has to pay Rs 72.7 million to KWSB in arrears. Meanwhile, the KESC also owes Rs 660 million to the KWSB.
The federal government departments have also never bothered to pay their water bills.
According to the list, Bureau of Statistics is defaulting on payment of at least Rs 0.446 million to KWSB, Central Board of Revenue Rs 10.8 million, Civil Aviation Authority Rs 160.8 million, Export Promotion Bureau Rs 30.3 million, Commerce Ministry Rs 0.680 million, Culture and Tourism Ministry Rs 145 million, Defence Ministry Rs 4.9 billion, Education Ministry Rs 18.6 million, Finance Ministry Rs 73.5 million, Food Agriculture and Livestock Ministry Rs 49.7 million, Health Ministry Rs 110.1 million, Information Ministry Rs 36.8 million, Interior Ministry Rs 5.5 million, Ports and Shipping Ministry Rs 1.5 billion, Production Ministry Rs 4.5 billion, Revenue Ministry Rs 0.99 million, Science and Technology Ministry Rs 43.7 million, Works and Services Ministry Rs 340.1 million, Pakistan Postal Services Rs 6.6 million, Pakistan Railways Rs 225.3 million, Pakistan Telecommunications Rs 130 million, Social Welfare Ministry Rs 4.1 million while the Ushr and Zakat Ministry has to pay bills of Rs 16.6 million.
The now-defunct City District Government Karachi has also not cleared its dues worth Rs 2 billion. The Ibrahim Haidery district council has to pay KWSB Rs 77.6 million, Gharo Town Committee Rs 860 million, Darsano Channo union council Rs 12.9 million, Dhabeji union council Rs 125 million, Jangshahi union council Rs 149 million while the Konkar union council is yet to pay Rs 63.3 million.