Murad Ali Shah approves Rs.170 million grant for KMC, vows to make KMC financially strong organization

English Ministries Official News

Karachi, January 21, 2021 (PPI-OT): Sindh Chief Minister Syed Murad Ali Shah has vowed to make Karachi Metropolitan Corporation (KMC) a financially stable organization by giving it a workable financial model and reorganizing its various wings responsible for revenue collection. For the purpose, he constituted a committee headed by Minister Local Government Syed Nasir Shah, Advisor law Murtaza Wahab, Secretary Local Government Najam Shah and Administrator KMC Laiq Ahmed to submit their recommendations to make the KMC a financially stable organization.

He took this decision while presiding over a meeting to review the financial condition of the KMC which has failed to pay salaries to its senior employees from the months of November and December, 2020. The meeting was attended by Minister Local Government Syed Nasir Shah, Advisor Law Murtaza Wahab, PSCM Sajid Jamal Abro, Secretary Local Government Najam Shah, Administrator KMC Laiq Ahmed and other concerned officers. The chief minister said that it was quite disturbing to know that Karachi, being the industrial hub of the country, was financially running the entire country but its metropolitan corporation had bogged down in the financial crisis and was unable to pay the salaries to its senior officers.

“We have to overhaul various wings of the KMC, particularly those which are responsible for revenue collection,” he said. Minister Local Government Nasir Shah said that the DMCs, under the guidance of the chief minister, have not only curtailed their non-development expenditures but have enhanced their revenue collection. Quoting the example of the DMC South, Nasir Shah said that it used to collect Rs9 million from charged parking and now it has enhanced the collection to Rs750 million. “This is something to plug the pilferages,” the chief minister said.

The minister also said that the DMC Korangi used to utilize Rs20 million on lifting of filth and garbage from their area but now with better management they have curtailed the expenditure to Rs9 million only. Similarly, the DMC Central has enhanced its collection from shops and such other establishments. The chief minister said that the KMC has valuable assets such as it has beautiful parks in the city and huts along the beach. Why the KMC was not operating them on PPP mode so that they not only became a reasonable source of revenue for it but could be maintained properly.

Administrator KMC Laiq Ahmed briefing the chief minister said that there were around 1.4million establishments/properties from where the KMC collected Municipal Utility and Conservancy Tax (MUCT) but this time it could have only collectedRs280 million from 35,000 units. Citing the example, he said the contractor had no printed bills/receipts to collect the tax. The chief minister said that the KMC has the potential to collect Rs1.5 billion only against MUCT and it could auction the services of its petrol pumps and marriage grounds to the highest bidders. “I want you to prepare a financial model and present it within the next 15 days and then I’ll add necessary input to make the KMC a rich organization,” he said.

The chief minister also directed the Local Government department to issue a notification to take back collection of tax from Mobile Phone Towers from SBCA and hand it over to KMC. “The collection whatever the SBCA has made so far should be paid back to KMC,” he directed. The chief minister approved an Rs170 million grant for KMC so that it could clear salaries of its senior employees. He also said that he would be reviewing KMC financial position fortnightly.

For more information, contact:
Press Secretary,
Chief Minister House, Sindh
Tel: +92-21-99202019(Ext: 336)
Website: www.cmsindh.gov.pk