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Express Tribune
a day ago
- General
- Express Tribune
Karachi teeters, yearns for ownership
Karachi, my Pride of Place, is in a shambles. Once prided as the 'city of lights' and a cathedral of arts, culture and education, today this metropolitan of around 30 million people, a prospective economic powerhouse, is in ruins and has been ripped off its glory and magnanimity. Its infrastructure is dilapidated; civic amenities, now incurred by its inhabitants at an exorbitant cost, have gone for a toss; and the once proudly mentionable norms and ethos are nowhere. The city is bulging and exploding. It is literally unplanned, and the claim of it being a town properly laid-out by the colonials is a myth today. Thanks to 'China-cutting', an arbitrary and illogical truncation of land, even over sewerages and amenity plots, Karachi is rapidly turning into a ghetto. As part of modernisation, it is witnessing a stampede of high-rises, pinned on a poor architecture sans parking and safety exits. It is polluting; possesses severe environmental hazards with solid-waste choked in drainages; awaiting monsoon rains to expose its fault-lines; and has to deal with an inadequate infrastructure, such as parks and playgrounds, and a sizzling healthcare system. Millions of students, from primary to secondary, have no alternative but to rely on fleecing, quality-less schools, and a higher education with an extortionate price-tag. The metropolis does not have a public transport system et al, and the world's 12th largest city is devoid of a formal taxi network too. Millions either commute on junked four-wheelers that fleece them to the core, or haplessly hop on Chingchi (a mocked version of auto-rickshaw). Not to ever dream of a Metro or Circular Railway! The conurbation with an area of 3,780 sq-km is encircled with cantonments (garrisons), and its dwellers hardly have a say in their affairs. Karachi, unlike any other world mega city, does not have a police of its own and the law-enforcement is at the mercy of federal and provincial maneuverings with least regard for its citizens. Not to mention mafias, drug-traffickers, criminal gangs and political masqueraders who rule it at impunity. Pakistan's largest urban centre grapples with water shortage with private hydrants under the paramilitary and their cahoots minting billions; an electricity cobweb that is rusted and lethal, piling pilferage on its consumers; and a local tax and levies collection machinery that is corrupt and devoid of any accountability. It is no surprise that millions of Karachiites are in a miserable fate. Many more are in depression owing to an unending socioeconomic pushback they have to face to stay afloat. A city that generates an average of 65% of national revenue has mysteriously nothing to share with its genuine dwellers. It is a pity that Karachi lacks a local government too, and the obliterated and politically-leech Karachi Metropolitan Corporation is not even privy to collection of property taxes under its nose. None own the city, neither the people nor the political elite, as they all are on their own waywardly scrambling in a parasitic manner. Less said the better about governance and the Mahishmati Raj (a phrase derived from ancient Haihayas kingdom) which ensures that its subjects are in tatters under a perpetual despotic rule. It is, thus, no surprise if the Economist Intelligence Unit has ranked Karachi as the fourth least livable city in the world. Its Livability Index, 2025 has simply mirrored as to where the municipality, its aristocracy and residents stand in the comity of nations. The city is a manifest of ad hocism that has evolved into an amoebic demographic-cum-economic denominator, and is mysteriously alive and kicking. Though the city is glittering at face value and is home to some greatest philanthropy, it is teetering underneath. Its folk are in disgust and pain. Karachi is in need of a genuine political mandate, not the one tampered at midnight, or agreed on a hybrid equation. All it desires is ownership by its natives and its due share from the national mainstream. It is in an existential crisis and the city must be rescued.
Express Tribune
a day ago
- Express Tribune
Karachi traffic police cracks down on illegal parking fees collectors
Listen to article Karachi authorities continued enforcing the citywide free parking policy as a Karachi traffic warden team took action on Shahrah-e-Faisal, arresting three individuals for illegally collecting parking fees. The suspects were caught red-handed and handed over to the police. A case has been registered at Bahadurabad Police Station, and legal proceedings are underway. Karachi Mayor Murtaza Wahab has instructed inspection teams to conduct regular checks and ensure full compliance with the free parking decision. He reiterated that no compromise will be made on public interest and that implementation of the policy must be guaranteed. Earlier, the Sindh government abolished parking charges on all roads across Karachi's 25 towns, according to a notification issued by the local government department. The move followed directives from Sindh Chief Minister Murad Ali Shah and formed part of a broader parking policy aimed at ensuring free public parking citywide. A major relief for Karachiites by the Sindh Government! Free parking announced across the city on the directives of CM Sindh. Local government instructed all towns for immediate implementation. — Karachi Metropolitan Corporation (@KmcPakistan) July 25, 2025 'Providing free parking to citizens was a top priority,' said Karachi Mayor Murtaza Wahab, adding that the decision was taken in the public interest and that the Karachi Metropolitan Corporation (KMC) remained financially stable.
Express Tribune
4 days ago
- Business
- Express Tribune
Fixing Karachi: Unlocking the Gridlock
Listen to article If there is one thing that repeated financial crises, whether domestic or international, have taught us, it is that financial independence is crucial for the survival of all levels of government. If financial stability does not exist, or if it exists but each level of government is not financially independent, then there lies little possibility for the respective government to continue doing its job. The era of financial dependence has long gone. While one of the largest revenues of the local governments is property taxes or municipal taxes, there is yet another substantial way of generating funds for meeting the needs at the grassroot level. In the financial world, such instruments are called "munis", the short form for municipal bonds. The idea behind municipal bonds is that they provide funds to local governments for development projects at a rate lower than banks would. Essentially, municipal bonds operate very similarly to government bonds (commonly called treasuries) wherein the municipality utilizes its good name as well as its credibility to seek funds from financial institutions as well as the public, who in turn are provided a fixed rate of return with the surety that there is minimal (practically zero) risk of default. Municipal bonds come in two broad types: secured and unsecured. Secured bonds are when an asset of a municipality is pledged for raising funds. Unsecured munis are what they appear to be; that is, they are unsecured to the extent that no specific asset is pledged. However, they do have the guarantee of the municipal government ensuring that the interest payments on the bond will be made and eventually the principal will be returned. Karachi is a humongous city with exceptional potential. It has become a common political comment in drawing rooms and dinner parties that Karachi generates the highest amount of revenue, yet the same is not being spent on the city. I would argue that there is more to this calculation than meets the eye. Suffice it to say at this stage that Karachi does not have the funds at the municipal level to ensure its development and the city is not financially independent. A ray of hope that appeared on the horizon is by virtue of MUCT (Municipal Utility Charges and Taxes) collection through K-Electric bills. This has resulted in a monthly revenue of nearly Rs 200 Million. In the 10 months of the last financial year, KMC received an amount of more than Rs 1.9 Billion as opposed to the previous annual collection of only Rs 155 Million. One must remember that MUCT is not a new tax and had always been in existence. However, there has never been a mechanism to properly collect this levy and realize its potential. The Karachi Metropolitan Corporation, through out-of-the-box thinking and keeping in view the ground realities of the city, partnered with a utility company to ensure recovery of MUCT. This has resulted in major financial gain for KMC, and the results of it can be seen every day around the city in the form of its development projects. Though one may question the quantum of development by KMC compared to the gigantic size of our city, however, after a long time KMC's presence in terms of development as well as rehabilitation appears to be visible and one is hopeful that the same will continue fairly, transparently and equitably. With that being said, the money recovered through MUCT is certainly not enough. Even otherwise, a lot of times money is needed now, whereas the revenue is likely to come in the next 5 to 10 years. That is where the concept of municipal bonds can be a game changer for the city of Karachi. Essentially, what is being proposed is the issuance of bonds to investors. Initially, these may be Pakistani investors. However, subject to regulatory approval, foreign investors may also be included. This will help raise money for funding development projects at very low rates, thereby ensuring financial viability and independence for the city of Karachi. Municipal bonds are utilized across the world in cities like New York, London, Ahmedabad and Pune, among others, to borrow money and fund development projects. India's municipal bond market, although nascent, has raised INR 5000 Crores which have directly translated into development works. Likewise, New York City has for decades funded subway expansions, schools and bridges through muni bonds. Municipal bonds have achieved the same feat for all such cities which have issued them. The precedent is clear. On state level, in Pakistan, the Government of Pakistan regularly issues bonds to local and foreign investors for the purpose of funding its development and day-to-day needs. Hence, while this is a novel idea from the perspective of a local government in Pakistan, it certainly is not new to the financial world. The only differentia between municipal bonds and those issued by the state will be the level of government backing it. They would operate in a similar manner. At its core, this structure would empower Karachi to raise capital independently, enabling it to fund critical infrastructure and development projects without being reliant on federal or provincial handouts. The advantages will be far reaching: fiscal autonomy, timely project execution, public trust of Karachiites, and urban renewal. Bringing such a structure to Karachi through KMC is not just about finance. It is about redefining the city's capacity to shape its own future. The time for bold and systemic solutions is now. While nay sayers may question it by arguing that the Federal Government should be contributing or the Government of Sindh should be funding it since Karachi is the biggest contributor to the national or provincial exchequer, the argument would be futile since nay sayers have to just say "nay" and not account for their sayings. As Mayor, though with some effort, I am able to get funding from the Provincial Government, Federal Government is completely apathetic to the needs of our city and I don't see that lax attitude changing. With such a predicament staring me straight in the eye, one is left with two options: first is to fight incessantly throughout the term and hope for handouts, or secondly to take the driving seat and enhance KMC's own revenue base. Needless to say, that the latter is a more solution oriented approach. It is my firm belief that the only way for the city of Karachi to progress and come at par with international municipalities is by way of financial independence. The concept of municipal bonds as proposed will be a major step in this direction not only for the city of Karachi. But it will also prove to be a benchmark for all other big cities of Pakistan and municipalities. Let us hope that this time around we will not get stuck in petty politics but will rather focus on the bigger picture. This city belongs to all of us, and I hope that people from all quarters will support in this endeavourso that we, Karachites, can realize the immense potential of this unique metropolis. Let me conclude by drawing influence from a Chinese proverb which I am rephrasing as "the best time to act was yesterday, the second-best time is TODAY". It is time we ACT. Writer is serving as the 28th Mayor of Karachi
Express Tribune
5 days ago
- Business
- Express Tribune
PFC Award controversy leaves governance in limbo
Every couple of years, the Sindh government complains to the federal government that it is not receiving its due share of funds under the National Finance Commission (NFC) Award. However, the provincial government itself behaves no differently when it comes to allocating funds to its own local government bodies. Just as the NFC Award governs the distribution of financial resources from the federation to the provinces, the Provincial Finance Commission (PFC) Award is meant to ensure the fair distribution of financial resources among local bodies within a province. While Sindh complains about the federal government's failure to implement the NFC Award, local bodies across the province, including the Karachi Metropolitan Corporation (KMC), have long-standing grievances against the Sindh government regarding the non-implementation of the PFC Award. According to the Constitution, the federal government must announce a new NFC Award every five years, and similarly, provinces are constitutionally bound to issue a new PFC Award every five years to ensure proper financial distribution among local governments. In Sindh, however, the last NFC Award was announced in December 2009 and came into effect in July 2010. Its term ended in June 2015, but no new award has been issued since. Similarly, the last PFC Award was issued in 2002, and it expired in 2007. Nearly 17 years have passed since the last award expired. Despite this, the Sindh government has yet to announce a new PFC Award, and funds are still being distributed based on the outdated award, creating mounting financial pressures on local bodies. KMC, the province's largest municipal institution, is also facing serious financial challenges due to the delay in the new PFC Award. In its latest budget documents, KMC has specifically highlighted this issue, formally requesting the Sindh government to issue a new PFC Award without further delay. According to KMC's recent budget report, it contributes towards 60 per cent of the octroi tax revenue generated in Sindh but does not receive its share accordingly. Its expenditure, on the other hand, continues to rise. For instance, in the 2023-24 fiscal year, KMC required Rs28.93 billion for non-salary expenses but received only Rs17.98 billion from the Sindh government, leaving a deficit of over Rs11.19 billion for this category alone. While the provincial government fails to allocate the required funds to KMC, it continues to increase the salaries of government employees every year, adding to the corporation's financial burden. Official figures show that while KMC's revenue from octroi taxes has increased by 95 per cent over the past few years, its expenditure on salaries and pensions has gone up by 255 per cent. Naseer Memon, a political economist, opined that the PFC Award was a genuine issue across all provinces. "The provinces force the federal government to devolve powers to the provinces but are not in favour of transferring those powers to the local governments, which are at the foundation of a democratic system. There should be a fair criterion for the distribution of resources through the PFC Award. Unlike the NFC formula where population is the major criteria for distribution of resources, the PFC should have multiple criteria for distribution among local governments including resource collection and backwardness," suggested Memon. On the other hand, Dr Kaiser Bengali, a renowned economist, revealed that the Provincial Finance Commission still did not have constitutional protection. "Until this issue is resolved, the PFC award controversy will continue. Just as the Constitution clearly mentions the functions and powers of the federation and the provinces, it is also necessary to include the functions and financial matters of the local government separately," noted Dr Bengali. When The Express Tribune reached out to Sukkur Mayor and Sindh government spokesperson Arsalan Islam Shaikh regarding the delay in the new PFC Award, he stated that Sindh had been severely affected by natural disasters like COVID-19 and floods over the past several years, which has delayed the announcement of the new PFC Award. "Issuing a PFC Award is a constitutional obligation and it will be finalized soon," assured Shaikh.
Business Recorder
7 days ago
- Business
- Business Recorder
KMC to launch smart parking services
KARACHI: The Karachi Metropolitan Corporation (KMC) is set to launch Smart Digital Parking Services in selected covered and boundary wall-enclosed parking zones across the megacity. This initiative is part of a broader vision led by Mayor Karachi, Barrister Murtaza Wahab, to modernise public infrastructure and enhance urban mobility. Following the earlier announcement of free parking at 32 locations, KMC has now approved the development of Smart Parking Zones at 10 key sites, including Sindbad, Gulshan-e-Iqbal, Parking Lot near AO Clinic, Nazimabad, Clifton Centre, Sassi Arcade, Paradise Centre, Polo Ground, Dr Ziauddin Ahmed Road, Crystal Court, Plot Between Beach View Parking, Clifton, Hyper Star, Beach View Parking, Clifton, and Driving License Branch, Nazimabad. To implement this project, the Charged Parking Department has floated tenders and initiated procurement procedures. An Expression of Interest (EOI) has been invited under a Public-Private Partnership (PPP) model, enabling private sector participation in Karachi's urban development. The Smart Parking system will include digital ticketing and cashless payment options, real-time parking availability updates, enhanced security and monitoring in covered areas. 'This initiative will not only address Karachi's growing parking demands but also mark a shift towards digital civic infrastructure — a long-term investment in the city's future,' said a KMC spokesperson. The project is currently under review and will be launched in phases following formal procedures. Copyright Business Recorder, 2025
