–Karachi mayor says KMC faces severe budgetary deficit; expects urgent support from govt
–Karachi mayor says funds urgently needed to address backlog issue
–Mayor regrets that devolution of power as per the constitution has not been implemented properly
Karachi Metropolitan Corporation (KMC) is about to initiate a survey encompassing all categories of properties so as to expedite and streamline recovery of Municipal Utility Tax (MUT) in the metropolis.
Karachi Mayor, Wasim Akhter, in an interview with the news agency said KMC, faced with a severe budgetary deficit of Rs 8 billion, does not only expect urgent support from the provincial and federal governments, but is equally committed to raising funds on self-help basis.
Emphasising the importance of the job, he said the current recovery rate of the only tax imposed by KMC, rest being fees, is pathetically low.
“KMC is presently collecting, on an average, Rs 15 million to Rs 20 million as MUT against the envisaged Rs 250 million to Rs 300 million per month,” said the Mayor.
The massive population flow to Karachi during the past ten years and emergence of new businesses and habitat demands fresh survey to reassess numbers, as well as the value of properties, located in the metropolis.
“This is important as the surge has also enhanced manifold the demand for civic amenities and facilities that again require massive funds to meet the same,” he elaborated.
The properties to be covered were said to range from amenity plots to industrial, residential and commercial plots.
KMC Senior Finance Officer, Khalid Mehmood, while complimenting the mayor, said Karachi Metropolitan Corporation, as per existent estimates, can easily collect Rs 600 million to Rs 800 million under the head of MUT.
“However, since nothing can be done in a vacuum, KMC has adopted a pragmatic approach and hired services of a reputable and equally credible organisation to conduct an elaborate survey,” he said.
The organisation was said to have already realised the job in Punjab and has helped LMC strengthen its revenue generation capacities.
In reply to another query, Karachi mayor agreed that revenue collection in Karachi was in itself a major challenge and, for the purpose, KMC was, therefore, compelled to adopt measures as attachment of property and arrest of the non-payees.
This, he said, is being complimented with capacity building of KMC staffers ensuring quality service delivery to the citizens.
“We have to go for a carrot and stick policy, as our budget—already exposed to a deficit of Rs 8 billion— leave little space to be lenient,” said mayor Wasim Akhter.
To a query, Karachi mayor said funds are urgently needed to address the issue of backlog as no substantial work could be done in particular context of garbage disposal that has accumulated to severe proportions, due to inadequate handling during the past.
“There is no aggravation in the fact that Karachi generates 12,000 tonnes of garbage daily, while no more than 4,000 tonnes can be cleared turning several parts of Karachi into heaps exposing people to serious health risks,” said Wasim Akhter.
This may be mentioned that Sindh local government department through the body of Sindh Waste Management Board has only recently hired services of a Chinese company for garbage disposal in East and South districts of Karachi. The scheme is, however, yet to be functional.
Karachi Mayor said removal of encroachment built on some 30 different rain drains and storm water drains, repair of 33 major thoroughfares encompassing 8,000 kilometres and maintenance of 37 parks are the responsibilities KMC is trying to realise through limited resources at its disposal.
In its efforts to generate resources within available provision, he said KMC is presently engaged in setting right the charged parking, being done in a haphazard manner, besides streamlining its parks and amenity plots.
“Smart parking is being done at the KMC managed sites while the proper and judicious use of open space, parking grounds and parks are also ensured to generate revenue and providing needed recreational facilities to the masses,” he elaborated.
“We need targeted development in Karachi,” he emphasised and sought the support of the federal government in providing the sovereign guarantee for such schemes.
Loans and assistance cannot be procured from international agencies and institutions and other countries without guarantees provided by the federal government, said the Karachi mayor mentioning that provincial government also have to play its role in this regard.
He appreciated that federal government has provided needed assistance for the ambitious green bus service that is currently under construction in the metropolis.
“We have to ensure that development in every context is complimented on basis of population growth,” he said.
In reply to a question, he said essential revenue generation components of the metropolitan corporation ranging from water and sewerage board, solid waste management to transport and collection of local taxes have been taken away from the KMC after amendments to the provincial Local Bodies Act.
While the management of fire brigade department, KMC hospitals, charged parking, zoo management, cleaning of major rain drains coupled with infrastructure development in selected areas have been placed under KMC purview.
“Despite this scenario, we are trying to streamline the situation within available resources,” said the Mayor mentioning that the KMC also have to meet the liabilities related to salary and pension of its employees.
“I have been repeatedly informing the concerned quarters about the deficit the KMC is exposed to and which is hampering its performance,” he said.
The KMC urgently needed millions of rupees under varied heads, including infrastructure development (Rs 5,000 million), containment of environmental degradation (Rs 2,000 million); revamping of fire brigade department (Rs 500 million); meeting salary and pension related shortfall at the rate of Rs 300 million per month for 12 months and clearance of liabilities and debts (Rs 3,600).
Wasim Akhter regretted that devolution of power under the 18th amendment to the constitution has not been implemented in letter and spirit in the province itself and that the KMC during the past few years has been deprived of most of its authority.
“But we also cannot ignore that we have no money even to provide free of cost medicines to resource-less patients, while our fire brigade department is also in urgent need to be revamped.
“We currently have 32 engines in our fleet but only 24 are in working order and there is also no fund available to arrange for foam or replace the worn-out snorkel,” he said.
It is in this backdrop that MUT, introduced in 2009, is being reactivated and streamlined, but this cannot be enough to meet the needs of Karachi—the ever expanding city exposed to a series of challenges.
