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Money Matters

In bad shape

By Tariq Ahmed Saeedi
Mon, 12, 15

Local government polls that concluded in early December have left a trail of questions that include what will be the new face of Karachi – the world’s 7th densest megacity with an estimated 20 million inhabitants – which bears deep scars from the neglect.

Local government polls that concluded in early December have left a trail of questions that include what will be the new face of Karachi – the world’s 7th densest megacity with an estimated 20 million inhabitants – which bears deep scars from the neglect.

The local polls were held after a break of almost 10 years. The previous local government ended its tenure in 2009. During this recess, developments in the city were moving at a snail-pace or in some instances came to a sudden halt.

An official document showed that the Sindh government allocated Rs45.104 billion for City District Government Karachi, Karachi Metropolitan Corporation and Karachi Water and Sewerage Board (KWSB) in the annual development programmes during the seven fiscal years (2009-10 to 2015-16). For urban and remote areas and other sectors in the city, total allocations amounted to Rs80 billion. Together these figures accounted for a little over 10 percent of the total ADP allocations of Sindh during the period under review.

In bad shapeLegislator Khawaja Izharul Hasan of Muttahida Quami Movement (MQM), which emerged as the single largest political party in the local government elections in Karachi criticised the provincial ruling Pakistan Peoples Party (PPP). MQM has had a long track record of love and hate relationship with the PPP for neglecting the metropolis.

“They [PPP] deliberately ignore Karachi as they are not elected from here,” said Hasan, who’s the leader of the opposition in Sindh Assembly.

“The allocations were peanuts, given that Karachi contributes Rs60 billion as sales tax on services every year.”

The MQM lawmaker said the province earmarks funds for the development, “but usually 10 percent of the total annual allocation is released.”

“The released fund is too to meet non-development expenditures of KWSB and other departments,” he added.

PPP Karachi Division President Najmi Alam denied that funds were not released.  “This is not the case,” Alam responded to a question. “The released funds need to be consumed first,” he said.

The national ruling party Pakistan Muslim League-Nawaz (PML-N) also raised question over the non-utilisation of funds. “Whether it was 10 or 20 percent, the question is how much of the allocations were utilised,” PML-N General Secretary Sindh Nehal Hashmi said.

“I think had only two percent been properly used things would have been different,” Hashmi said, referring to roads, flyovers and other city infrastructure in bad condition.

He said there have been no visible development works during the last seven years. The document said the provincial government earmarked Rs13.231 billion in 2014/15 for education, health, local government and sports and youth affairs from the provincial ADP fund, but it actually disbursed Rs8.587 billion. That means there was a shortfall of Rs4.644 billion.

The province allocated Rs257 million for the ongoing schemes in the health sector in Karachi.

A MQM source said the health ministry didn’t release the quarterly disbursement for the first three months of the current fiscal year of 2015/16. The second quarter has also ended.

The port city is a magnet for people coming from around the country. A World Bank report said Karachi underwent a massive 80 percent growth in its population between 2000 and 2010.

There is dire need for mega water and sewage projects to meet the need of the burgeoning population.

K-IV, which envisages 260 million gallons per day water for Karachi, was approved at a cost of Rs25.552 billion to be shared half by Sindh and federal governments. S-III is another mega project to improve drainage system in the city. Both of these projects have been in the media reports for years, but nothing substantial has been done to execute them.

The MQM parliamentarian decried that the Sindh government has not announced any mega project since 2013.

The city district government introduced Karachi Package back in 2005 to start new projects every year. A sizeable annual fund was allocated under the ADP for the new development schemes in the metropolis. Around two to three billion rupees were earmarked for the Karachi Package between 2005/6 and 2011/12. In the following years, Sindh government, which claims to give prime importance to Karachi in its development portfolio, couldn’t keep its word. The province kept a meagre one billion rupees for the development of new schemes in Karachi out of the total ADP funds from 2012/13 to 2015/16.

There was no single Karachi-specific foreign assisted project in 2015/16, showed the document.

Civic constructions, which need frequent rehabilitation, have crumbled due to fund paucity. For FY13 and FY14, some of the development projects were entirely neglected as there were no allocations for them in the two fiscal years. Most of the development schemes were approved back in 2007 and 2008.

For example, the provincial government didn’t allocate fund for the rehabilitation of roads across the city during FY13 and FY14.

The university road, which has a number of landmarks, including the Federal Urdu University, NED University and University of Karachi, have been awaiting funds to get a makeover for the last two fiscal years.

Sindh government attributed the cut in development spending to below-than-estimated release of federal transfers.

Besides, Alam said over the last two years, the focus has been to get the ongoing schemes completed before approving the new schemes.

MQM was part of the provincial government during the last several years. It couldn’t do anything to get desirable resources for development from its partner in-charge. It’s to be seen how well now it will fight its case for the economic empowerment.

Since the local government reps will deal only with municipal functions under the present system, the provincial administration has nothing to lose – for example in terms of revenue sources. The provincial government will continue to rule the roost whether it is the accountability of elected functionaries through local government commission or when there is a matter of distribution of resources by provincial finance commission. 

Now, improvement in municipal functions will depend on how aggressively local elects work to demand their rights and how sincere will they be in their efforts to discharge their duties. The functionaries are responsible for water supply and drainage, controlling infectious diseases, regulation of buildings and promotion of primary and secondary education according to the Local Government Act 2013.

MQM is against the present watered-down local governance system.

“The act is in contravention of the article 140-A of the constitution of Pakistan,” Hasan said.

The article reads: “Each province shall, by law, establish a local government system and devolve political, administrative and financial responsibility and authority to the elected representatives of the local governments.”

MQM is fastening its seatbelts to push the province to implement the provision – something which PPP is flexible to talk on. 

Alam said amendments are possible, “after all table talks can address the differences.” Hashmi said if local representatives smartly move they could still do good within the given resources and power.  He said negotiation is the best option.

The writer is a staff member