AN OVERVIEW 2017-2018 - EXPLANATORY MEMORANDUM

AN OVERVIEW 2017-2018 - EXPLANATORY MEMORANDUM

AN OVERVIEW 2017-2018 - EXPLANATORY MEMORANDUM

AN OVERVIEW 2017-2018 Explanatory Memorandum Page 1 EXPLANATORY MEMORANDUM The purpose of explanatory memorandum is to provide a guide to the Karachi Metropolitan Corporation annual budget. It entails budgetary planning and an over-view of the two major components of the budget: revenues and expenditure. It contains three main chapters: i. An Overview: Fiscal Policies of KMC. ii. Estimates of Receipts: Revenue resources of KMC and its analytical study. iii. Estimates of Expenditure: Current and Development of Expenditure and KMC’s obligatory Responsibilities.

AN OVERVIEW 2017-2018 - EXPLANATORY MEMORANDUM

AN OVERVIEW 2017-2018 Explanatory Memorandum Page 2 Brief History.

Board of Conservancy now Karachi Metropolitan Corporation. The local government institution as a basic democratic entity and as a basic administrative unit has been recognized all over the civilized world. The body which is elected by the residents on their own to regulate and manage public affairs and meet the need of local residents and to improve efficient service delivery at the local level to develop a sustainable quality of life for people. The Local Government in Karachi has a strong history. It can be claimed that Karachi is one of the few cities in the Indo-Pak sub-continent where municipal administration was established primitively during the early British Period, to cope with the epidemic of cholera, which was then ravaging the city.
In the year 1846 “Board of Conservancy” was established.
In the year 1852 the Board of Conservancy was converted in a “Municipal Commission” under the Municipal Act of 1850 with its temporary offices established at McLeod Road (the present I.I.Chundrigar Road).

In the year 1878, however the Bombay District Municipal Act (Act VI of 1873) was extended to Provence of Sindh areas including the “City Municipality of Karachi.”
The promulgation of Local Government legislation was continued when in the year 1933 the “City of Karachi Municipal Act, 1933” was promulgated and the “Municipal Corporation of the City of Karachi”came into being.

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In the year 1947 the Karachi Metropolitan Corporation formulated its own Rules - The Karachi Municipal Corporation Rules 1947.

In the same year India was partitioned and Pakistan, the dream of millions of Muslims of the sub-continent, came into being. All the affairs of the KMC continued to be dealt with under the Karachi Municipal Corporation Rules 1947 until 1960 when the Local Bodies system was altogether changed through the Basic Democracies Act 1959 introducing the Basic Democracy System throughout the country. The new system was enforced through the promulgation of ‘’West Pakistan Municipal Administration Ordinance 1960. Elections of the local bodies under this system were held twice - first in 1960 and then in 1965.

With the enforcement of Martial Law in 1971 the Basic Democracies system was also abolished in 1971.
After separation of East Pakistan to deal with the affairs of local bodies in the respective jurisdiction of each province promulgated its own local bodies laws. Accordingly in Sindh “The Sindh Peoples’ Local Government Ordinance” was promulgated in 1972.
In the year 1976 the status of Metropolitan Corporation was awarded on KMC and areas constituting Landhi Korangi Municipal Committee, DrighMalir, Baldia Township and North Karachi were merged into the Corporation. After the imposition of Martial Law in 1977, a Citizens’ Committee comprising of nominated members was however formulated in 1978.

It was in the year 1979 when the Sindh Peoples Local Government Ordinance 1972, was superseded by another ordinance namely “The Sindh Local Government Ordinance, 1979” was promulgated.

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At the same time for the management of water supply system a Water Management Board was constituted in 1982 which was later on converted into Water & Sewerage Board to function under the umbrella of KMC.
On 12-2-1986 the council of Karachi Metropolitan Corporation was dissolved by the Government of Sindh and the elected council was substituted by an Advisory Committee.
With a view to administer the development and maintenance of civic services in Karachi the two tier federated system was introduced and pursuant to the Sindh Local Government (Fourth Amendment) Ordinance, 1987, the 4 Zonal Municipal Committees (district -wise) came into existence i.e.

South, East, West and Central respectively. For the first time in the history of KMC the elected council was constituted through Zonal Municipal Committees by adopting one third members of each Zonal Municipal Committees. The distribution of functions between the KMC and the Zonal Municipal Committees were made on the principle that city-wide functions were entrusted to the Metropolitan Corporation and function of local nature particularly the maintenance of infra-structure and delivery of services were entrusted to the Zonal Municipal Committees. To ensure that the functions are clearly enumerated eliminating any overlapping it was provided that the Zonal Municipal Committees would perform all functions of Municipal Committees as laid down in the law and would not perform the functions assigned exclusively to the Metropolitan Corporation.

The distribution of resources between KMC and Zonal Municipal Committees were made in a manner so as to ensure that both institutions remain financially viable and have proportionately sufficient resources in relation to the functions assigned to them.
Again the council of Karachi Metropolitan Corporation was abolished on 18-7- 1992 along with all with the Zonal Municipal Committees and to run the affairs Administrators were posted in KMC as well as in all the respective Zonal Municipal Committees.

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In the year 1994 the two tiers federated system was also done away with and all the Zonal Municipal Committees were merged in KMC, to continue to function as District Municipal Offices under the supervision and control of KMC. In the mean time a new district namely the District Malir was also established and consequently the District Municipal Office Malir also came into existence.
So to say the unified KMC system was allowed to continue up till mid 1996 when through an amendment in the Sindh Local Government Ordinance 1979, the two tier federated system was restored again and now 5 District Municipal Corporations viz.

South, Central, West, East and Malir were established on 1996 on almost the same pattern of former Zonal Municipal Committees. This time the District Municipal Corporations have been given a wider scope of functions and more funds as per the formula fixed by the Government.
For the accomplishment of objectives the District Municipal Corporations have been allowed to levy taxes and collect Advertisement Tax, License Fee (Dangerous/offensive trades) and general trades, etc. The KMC revenues comprise of Octroi (the main stay and constitutes 93% of its revenue receipts and 81% of the total receipts of the financial year 1996-97), Fire Rate (collected by Karachi Water & Sewerage Board) and other minor sources and also the Capital Receipts generated through sale of land and cottage industries including development charges.

After deducting the committed liabilities out of the total revenue income so generated by KMC, the net revenue was distributed amongst the District Municipal Corporations on the basis of 70% on population and 30% on inverse ratio which in percentage terms comes to as under : (a) Karachi Metropolitan Corporation 33.00 % (b) District Municipal Corporation (South) 14.98 % (c) District Municipal Corporation (East) 16.15 % (d) District Municipal Corporation (Malir) 05.99 % (e) District Municipal Corporation (West) 12.96 % (f) District Municipal Corporation (Central) 16.93 %

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In the year 2001 through promulgation of the Sindh Local Government Ordinance 2001 a third tier was added to the earlier two tiers and replacing the earlier provincial administrative units of divisions, districts and talukas in Sindh with three level of local governments viz. District/City District Governments, Talukas / Town Municipal Administrations and Union Councils. a)The District Governments have been assigned the functions which were formerly being performed by the Provincial Governments including district developments planning, revenue collection, education, health, community development, infrastructure development, agriculture extension, development of strengthening the information technology etc.

b)Whereas the Talukas and Town Administrations have been made mostly responsible for the municipal functions. The Sindh Local Government Ordinance 2001 was promulgated to devolve the political power and decentralize administrative and financial authority to accountable Local Governments for good governance, effective delivery of services and transparent decision making through institutionalized participation of the people at grass-roots level. Under the devolution plan the City District Government Karachi emerged replacing the Karachi Metropolitan Corporation and various department from the Provincial Government as provided in the First Schedule of Sindh Local Government Ordinance 2001 were devolved to City District Government.

Beside merger of various civic agencies like KDA, KW&SB, MDA, LDA, KBCA etc. with all their assets and liabilities.

In 2001 with the promulgation of Sindh Local Government Ordinance 2001 the City District Government Karachi emerged in place of KMC until the revival of Sindh Local Government Ordinance 1979 in the July 2011.
In the year 2013 on promulgation of Sindh Local Government Act 2013, the KMC re-emerged in place of City District Government Karachi.

AN OVERVIEW 2017-2018 Explanatory Memorandum Page 7 Budget Preparation Exercise. The KMC’s budgeting is now being done as per the Sindh Council Budget Rules 1985 adhering to its schedules and procedures. Over the years, there has been steady expansion in all round development in Karachi bringing improvement in almost all areas of civic services: Municipal Services, Medical & Health, Roads & Communication, Sewerage and Disposal of Solid Waste Management, Environment.

Since the elected public representatives have assumed the charge of offices, the preparation of budget is a nightmarish task in view of the prevalent complexities such as curtailment of powers of Mayor Karachi, curtailment of right full OZT share of KMC, other deduction were also made by the GOS from OZT Share. Besides the inflationary pressures, rising cost of maintenance of services, annual increases in salaries and pension announced by the Government from time to time.

The preparation of budget for the year 2017-2018 is a difficult task:
As the KMC already faced heavy shortfall for payment of salaries to the employees, the Finance Department, GOS has distributed the OZT Share among KMC and respective DMCs without any formula and protected the salaries of devolved departments of DMCs and forcing KMC to bear the shortfall amount in salaries of KMC employees from own resources.
As in the same manner on revival of KDA, the salaries of KDA employees were protected by the GoS by giving share of Rs.200.00 million P.M. from the Grant-in-Aid of KMC while requirement of salaries of employees of KMC was ignored.

As there is already huge gap between the income and expenditure which has rendered KMC almost financially handicapped to meet its essential obligations. It is pertinent to mention here that KMC did not bear essential requirements of their medical institutions from own resources since several years.
As the GoS have taken away following many important functions from the purview of KMC.

AN OVERVIEW 2017-2018 Explanatory Memorandum Page 8 ➢ Solid Waste Management. ➢ Building Control Authority. ➢ Master Plan. ➢ Water & Sewerage Board. ➢ Transport Department.

Charged Parking. ➢ Local Taxes. (Advertisement). ➢ Karachi Package (Executing by the GoS). (As the Sindh Local Government Act 2013 reveal the fact that all the development schemes/ works are to be undertaken by the concerned Councils i.e. Karachi Metropolitan Corporation).
As the legitimate and due share of KMC on account of OZT share has not revised as yet which is the main contention of KMC.

The core responsibility of the Karachi Metropolitan Corporation is to finance development projects for Karachi from its own resources as well as funds released by the Government of Sindh. Projects are of various natures: funding KMC-run health institutions and one of its institutions widely known as Abbasi Shaheed Hospital and Karachi Institute of Heart Diseases to accommodate poor patients of city, road repair as Karachi’s developed road. Recreational Activities for over 25 million people like Women Sports Complex, KMC Sports Complex, Karachi Zoo, Safari Park, Welfare for the needy / poor citizens of city and lifting of millions of tones of Solid Waste to the landfills sites to dump.

There are plenty of works and projects being funded by KMC.

AN OVERVIEW 2017-2018 Explanatory Memorandum Page 9 To meet its financial obligations such as development projects and its establishment expenses, the situation worsened when the pace of government grants does not match with the rise which surpassed the later with huge margin. The KMC suffers with the persistent problem of resources constraint. Yet it can hardly afford to keep its development plan on low pitch. The resources constraints have further been aggravated as various financial issues still remain to be resolved by the Provincial Government some of which are as under: Provincial Finance Commission Award.

Constitution of PFC.
In light of Section 112(1) of the Sindh Local Government Act, 2013 (hereinafter referred to as the SLGA, 2013) the Government of Sindh re-constituted ‘the Composition’ and ‘Terms of Reference’ of the Provincial Finance Commission (hereinafter referred to as PFC) vide Notification bearing No. SO(C-IV) SGA&CD/4-37/2005 dated 24.11.2016. Main points of TOR of PFC.
To determine obligatory and priority expenditure of the Local Bodies and formulation of Divisible Pool for distribution of resources.
To preparing bench marks of revenues and expenditures and revenue and expenditure projections for Local Governments.

To determine the criteria and formula for vertical distribution of resources between the provincial Government and Local Government.
To determine the fiscal distribution criteria/ formula and mechanisms for the horizontal distribution between Local Councils of the allocable amount.

AN OVERVIEW 2017-2018 Explanatory Memorandum Page 10 Suggestions/ Recommendations for PFC. It is pertinent to mention that since the promulgation of SLGA, 2013 the Government of Sindh has failed to convene a meeting of the Commission, let alone, making any award as mandated by the SLGA, 2013; the Government of Sindh issued the aforementioned Notification dated 24.11.2016, but the first meeting has held on 2nd June 2017 after more than six months.

There is a one Metropolitan Corporation i.e. KMC, 28 District Municipal Corporations, 108 Tehsil Councils and 1,128 Union Councils are working in Provence of Sindh, in the best interest of all the councils of province and KMC the following steps are required to be adopted by the GoS.

That the functions of PFC include providing recommendations to Government of Sindh for the distribution of resources i.e. Provincial Finance Commission Award between the Provincial Government and the Local Councils out of the Provincial Consolidated Fund into a Provincial Retained Amount and a Provincial Allocable Amount. Furthermore, it also includes distribution of Provincial Allocable Amount amongst the Local Governments to meet the council expenses development or non-development which is called the PFC Award.
Thus, Government of Sindh should first of all calculate and decide the amount of PCF into PRA and PAA / Local Councils which is the basis of PFC award.

Once the due share of PFC has been decided and share of Local Councils determined, the Government of Sindh should decide the share of municipal development funds out of total Provincial Annual Development Program / Budget on the pattern of KPK PFC which decided to apportion 30% of the total KPK Provincial ADP. (And this fund should only be utilised by the respective councils only not on the pattern of Karachi Mega City Project etc.
Another recommendation is to make the PFC Commission more unbiased and truly representative if the half of its members is nominated by the Government Side while remaining half are made by the opposition side as the KPK PFC Commission embodies to make this forum more representative.

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That the Mayor of Karachi being one of the members of PFC as well as head of a Council and bound to receive the PFC Award wrote a letter dated 07.03.2017 to the Finance Minister, Sindh being the Chairman of the PFC Commission, wherein he mentioned the functions of PFC and provided the solution as to how the PFC Award should be distributed as soon as possible and to reconstitute the PFC by following the transparent procedure adopted by Khyber Pakhtunkhwa’s PFC (hereinafter referred to as the KPK PFC). That letter should be discussed in the meeting and agree upon after due discussion.
That it is pertinent to mention that unless the issue of distribution is resolved and the PFC Award distributed between the Government and Local Councils, the citizens will have to suffer as most of the Councils will be unable to pay the salaries or pensions to the government employees let alone the development functions.
The most important issue which should be highlighted in today’s meeting is that the Government should not try to confuse the OZT which was given to respective councils in Sindh against their lost revenues and the GoS and GoP both agreed to fund the councils against the withdrawal of Octroi and Zila Tax from the respective councils.

Likewise, some other forum first of all should finalise the actual amount against lost income of OZT with 15% increase every year which should have been released to respective councils. For example, KMC has calculated and informed GoS many times about the release of fair share to KMC as the later is in serious financial crises.

Likewise, the fact should be born in minds here that the OZT grant was a factor of compensation income which should not be discussed in this forum as part of PFC since PFC talks about the provincial revenues and not the factor of OZT.
Another important issue to discuss here should be fair share of Karachi, while deciding factors of Karachi, we should be mindful of the fact that Karachi is the highest revenue generation city in Pakistan and greatest source GST on Services (Records tell that over 90% of the total revenue which came to Rs. 60 billion comes from Karachi), yet the peoples of Karachi are bereaved of their right of water, electricity, cleanliness and other civic amenities.

Hence, GoS and GoP should be accountable to peoples of Karachi as to why proper infrastructure development is not

AN OVERVIEW 2017-2018 Explanatory Memorandum Page 12 being made here. The forum should also discuss the ways and means to pay special attention to Karachi as more infrastructure investment in Karachi shall bring more economic activity for the Province as well as for the Country. Thus, Special attention should be given to Karachi. Matching Grants in lieu of Octori and Zila tax Historical Mismatch of OZT Share: The KMC appears to be as cash strapped entity today while it was not the case before the prime most Octroi incomes was not taken away from the federal government.

The Octroi & Zila Tax (henceforth OZT) was abolished by the Federal Government in 1999 and the rate of General Sales Tax (GST) was increased from 12.5% to 15% to absorb the proceeds of 2.5% additional GST was given to the provinces as compensation for the loss of Octroi revenue for distribution amongst Local Governments.

The funds meant to be utilized primarily for salaries and nodevelopment expenses which constituted around major allocation and rest had to be used for the development schemes. Thus from this source KMC was able to meet its development outlay along with other sources of revenue. Historically, the KMC was the cash rich organization because of its potential income from Octroi was not taken away from the KMC. This can be gleaned from the fact that the Octroi income for the year 2001-2002 was pitched by the Government of Sindh budget as Rs.4,508,101,501 (Rs.4.508 billion) where as the 33% of that amount was supposed to be transferred to KMC which stood at Rs.

1321.459 million while KMC received Rs 1288.320 million. With each year, the OZT share was received often less and sometimes more.

The table below gives an accurate figure that reflects that over the periods unto 2016-17, the shortfall in receipts of OZT share, KMC received whooping Rs. 34,778.00 million less than its due share and if we add the Grant in Aid given to KMC in the year 2011-12 onward, reduced this outstanding to Rs.3,624.41 million short up till year 2016-17.

AN OVERVIEW 2017-2018 Explanatory Memorandum Page 13 Projected OZT Share (KMC) on the basis of average rise in Octroi Receipts:- Financial Year OZT Released (KMC Share as per Indicative Share) Special Grant-inAid OZT Share for Karachi on the assumption of 15% increase each year OZT Share for KMC @ 33% of the total share of Karachi Difference (Shortfall/ Surplus) Difference including the Grant in Aid 2000-2001 1,288.32 0 4,004.42 1,321.46 33.14 33.14 2001-2002 2,030.20 0 4,605.08 1,519.68 (510.53) (510.53) 2002-2003 2,682.43 0 5,295.85 1,747.63 (934.80) (934.80) 2003-2004 2,324.60 0 6,090.22 2,009.77 (314.83) (314.83) 2004-2005 1,939.08 0 7,003.76 2,311.24 372.16 372.16 2005-2006 2,420.44 0 8,054.32 2,657.93 237.49 237.49 2006-2007 2,862.17 0 9,262.47 3,056.61 194.45 194.45 2007-2008 3,411.74 0 10,651.84 3,515.11 103.36 103.36 2008-2009 3,411.74 0 12,249.61 4,042.37 630.63 630.63 2009-2010 3,411.74 0 14,087.05 4,648.73 1,236.98 1,236.98 2010-2011 3,923.50 0 16,200.11 5,346.04 1,422.54 1,422.54 2011-2012 3,923.50 3,153.60 18,630.13 6,147.94 2,224.45 (929.15) 2012-2013 3,923.50 6,000.00 21,424.65 7,070.13 3,146.64 (2,853.36) 2013-2014 3,923.50 6,000.00 24,638.35 8,130.65 4,207.16 (1,792.84) 2014-2015 4,250.46 6,000.00 28,334.10 9,350.25 5,099.80 (900.20)

AN OVERVIEW 2017-2018 Explanatory Memorandum Page 14 2015-2016 3,698.92 6,000.00 32,584.21 10,752.79 7,053.87 1,053.87 2016-2017 1,790.23 4,000.00 37,471.84 12,365.71 10,575.51 6,575.50 50,511.07 29,653.60 260,588.00 85,994.04 34,778.00 3,624.41 It is pertinent to mention here that on devolution of Education, Health & Local Taxes department to respective DMCs, the Finance Department, GoS has distributed the OZT share without considering the sharing formula between KMC and DMCs (33% and 67%) and protected the gross salary of DMCs employees without adhering to the grievances of KMC due to shortfall being faced by KMC due to transfer of income of Local Taxes.

An amount of Rs.141.690 million only was released on account of OZT share of KMC from Feb.2015 to Jun.2016. Now in the financial year 2016-17 the GoS being released OZT share to KMC by increasing 15% of the unlawful and unjustified last year OZT share of Rs.140.040 million i.e. Rs.21.006 P.M which comes to Rs.252.072 million P.A. Similarly the DMCs share have been increased by 15% of Rs.252.320 million p.m. i.e. Rs.37.848 million p.m. comes to Rs.454.176 million p.a. KMC’s Sources of Revenues: Income derived from KMC’s resources such recovery of Fees, Charges & etc; i. Grant (in lieu Octroi / Zila tax) from the Provincial Government out of the share of General Sales Tax.

ii. Income from sale of land and lease. iii. Income from the quarterly bills of Municipal Utility Charges ; and iv. Releases from the Provincial Government under District ADP.

AN OVERVIEW 2017-2018 Explanatory Memorandum Page 15 Municipal Utility Charges. The Municipal Utility Charges Department, KMC came into being in January 2009 through the Council Resolution, No. 364, dated 02nd June 2008 as provided in 39(b) of the Sindh Local Government Ordinance-2001. It started billing to its around 1.3 million consumers since then in collaboration with the Millennium System & Consultant pvt.

Limited (MSCL) outsourced by KMC for three years. MSCL’s jobs entail: a) I.T services b) Printing of bills c) Distribution of bills d) Updating the record of consumers The Karachi Metropolitan Corporation introduced the Municipal Utility Service Charges (MUSC) by replacing Fire Tax / Conservancy charges. The Council Resolution No. 452, dated 18 February 2009, unanimously decided, extended its approval to stop collecting Conservancy Tax from the inception of Municipal Utility Service Charges i.e. January-2009 and the Fire Rate be replaced with the newly imposed MUSC.

PRESENT STATUS
The Department has been circulating its bills among its consumers since January 2009.
Out of 1.3 million consumers, around only 40,000 consumers are paying their bills.
To improve the collection, notices have been issued among the consumers reluctant to pay their dues towards MUSC.
Rs.50 to Rs.60 million is realized by MUCT department, KMC every quarter.
Gulshan-e-Iqbal is the most responsive Town of Karachi.
Lyari is the least responsive Town of Karachi.
The Board of Revenue, Government of Sindh delegates the powers under the Land Revenue Act 1967 vide Govt.

of Sindh order No. DD (E&A)/HQ/BOR/201/6/269 dated 31.10.2016, the Financial Advisor KMC has been declared as an Assistant Collector Grade-I for the issuance of

AN OVERVIEW 2017-2018 Explanatory Memorandum Page 16 Notices against the defaulter of Municipal Utility Services. (Non-Payers) of MUCT.
The contract of I.T services, printing of bills, distribution of bill updated the record of consumers were provide the MSCL the contract of the same has been expired and the new contractor i.e.
M/S. Sprint Express (Pvt.) limited takeover the responsibilities for next three (03) years through the press tender after the complication of all cordial formalities.

In the current year three quarterly bills have already been distributed. K-Electric formerly known as KESC.

Although the KMC is basically service rendering agency yet the K-electric previously known as KESC has been billing on commercial charges with other levies like additional surcharges, energy charges, fixed charges, fuel adjustment charges, electricity duty, sales tax as well as late payment charges. It should have a separate tariff distinct from industrial / commercial organization at par with other WASA’s charges in Lahore.

K-Electric also owes an amount of Rs.1716.176 million estimated to be received by KMC from K-electric on account of land rent etc. In order to get rid of the fiscal deficit, KMC has taken lots of steps which include development of its Asset Management System, Public Private Partnership Scheme to lower the expenditure side and introduction of various taxes, Municipal Utility Charges (MUC) which if made effective would help KMC become a sustainable financial entity.

AN OVERVIEW 2017-2018 Explanatory Memorandum Page 17 World Bank Funded Projects/ Schemes.

Since the day, the present local government election have been held and the elected council has taken oath, the donor agencies have taken keen interest in the affairs of local government and have assured of their full support. A project namely Karachi Neighborhood Improvement Project (KNIP) is being undertaken which shall help KMC execute following projects with Rs.8500 million in different phases. 1. Redevelopment of Saddar Downtown Area (Rs. 4500 Million). 2. Malir Area Road and Public Spaces Enhancements (Rs. 800 Million) 3. Korangi Neighborhood Mobility Improvements (2000 million) 4. Support to Improved Citizen Services and City Capacity Development (Rs.

750 million) In addition to above, World Bank has committed an amount of Rs. 450 million for the following important Tasks.

1. Modernizing KMC financial management information system 2. Improving own-source revenue (OSR) collection 3. Public asset management system 4. Enhancing citizen participation, feedback and communications It is expected that the above interventions would on the one hand, create excellent infrastructure in the Saddar, Korangi and Malir while on the other hand, important initiatives in the field of modernizing KMC Financial System on the SAP model, survey of MUCT through improving OSR Collection, development of Public Asset and enhancing Citizen Participation, feedback and communication shall help develop Public Service Delivery System in KMC.

AN OVERVIEW 2017-2018 Explanatory Memorandum Page 18 Budget At a Glance 2017-2018 The Budget at a Glance for the year 2017-2018 in a nut shell is summarized as under: (Rs. in Million) RECEIPTS. Current Receipts. Rs.18,325.484 Capital Receipts. Rs.1,795.500 Total Rs.20,120.984 Funds for Provincial & District ADP and VGF. Rs.7,024.602 Grand Total Receipts. Rs.27,145.586 EXPENDITURE. Establishment. Rs.11,738.239 Contingent. Rs.2,075.664 Repair & Maintenance. Rs.251.685 Total. Rs.14,065.588 Major Development Projects/ Works. Rs.6,045.480 Funds for Provincial & District ADP and VGF. Rs.7,024.607 Grand Total Expenditure Rs.27,135.670 Surplus(+) Rs.9.916 The above Budget at a Glance for the year 2017-2018 is indicated that the a shortfall of Rs.(300.084) million total out-lay comprises of Current and Capital Receipts of Rs.27,145.586 million inclusive of budget estimates of Provincial & District ADP & VGF of Rs.7,024.602 million.

The total expenditure of KMC of Rs. 27,135.670 million is allocated in the budget estimates for the next financial year’s 2017-2018 comprises of an allocation of Rs.11,738.239 million for Establishment, Contingencies Rs.2,075.664 million and Repairs & Maintenance, Rs.251.685 million have been earmarked for Development Works / Project of KMC and for Provincial & District ADP & VGF of Rs.7,024.602 million.

AN OVERVIEW 2017-2018 Explanatory Memorandum Page 19 Performance Review ANNUAL DEVELOPMENT PROGRAMME 2016-2017 DISTRICT KARACHI (Completed Schemes) 2016-17 (Rs.

In million) ADP No. 2016- 17 Sector / Sub-Sector / Name of Scheme Estimated Cost Physical Planning & Housing Rural Sewerage / Water Supply Schemes (Ongoing) 1 Improvement of Sewerage Line & Water Supply at Faqira Goth, UC-05 Gujro, Gadap Town. 20.00 Total Rural Sewerage / Water Supply 20.00 Infrastructure (Roads & Bridges) On-going 2 Construction of Hut # 70 Hawks bay. 19.98 5 Construction of Protection Wall along Orangi Nallah Near Chota Medan Nazimababd District Central, KMC. 19.51 9 Installation of LED Lights at remaining Portion of Shahrah-eQuaideen from Khudadad Chowrangi up to main gate of Mazar-e-Quaid, Karachi.

10.56 10 Installation of Street Lights Poles and Lights at Jinnah Avenue Road, Model Colony from Malir Halt to Tank Turning. 20.00 11 Improvement of Street Lighting System at Main road Saffora from University road to Madaras Chowk (Distt Malir) 20.00 14 Improvement / Rehabilitation of Street Lighting System at Westharf Road. 20.00 16 Providing / Erection of G.I Sheet (curtain wall i/c Frame) for Security Arrangement at Clifton Bridge for Khana-e-Farang Iran, Karachi. 5.50 22 Rehabilitation / Improvement of Road & Footpath on PIDC Bridge District South Karachi.

9.96 26 Rehabilitation / Reconstruction of Adam Khan Road, Karachi.

49.80 27 Construction of Un-Interrupted U-Turn of Hakeem Ibin-e-Sina Road, Nazimababd. 14.96 28 Improvement / Rehabilitation of Nazimabad Intersection No.7 near AO Signal, Liaqatabad Town, District Central, KMC. 19.72

AN OVERVIEW 2017-2018 Explanatory Memorandum Page 20 33 Construction / Rehabilitation of Sharah-e-Noor Jehan from Abdullah College to Qalndaria Chowk North Nazimabad (Ph II) from Qlandaria road about to block renew Ship-owner College (314.660) 157.34 35 Improvement of road From BC—6 to St-10 D-47 to D-52 Block 1 Scheme 5 Clifton District South KMC Karachi 19.99 36 Improvement of Road Carpeting Hijrat Colony UC-9 Saddar Town Karachi. 20.00 39 Rehabilitation / Improvement of road Along Railway line Near Hijrat Colony District South.

20.00 41 Improvement / re-construction of Road opposite Zain-ulAbideen Hospital in Rizvia Society, Liquatababd Zone (Central) 20.00 42 Construction of Road Carpeting Internal Roads of UC-02, Manzoor Colony, Jamshed Town.

20.00 43 Construction of Road Carpeting near Mufti Mehmood Chowk UC-02, Baldia Town. 20.00 45 Construction / improvement of Roads in Shahnawaz Bhutto Colony / Zarina Colony near Arsalan Homes Sector 1-A/(PS- 98) at North Karachi 20.00 46 Construction / Improvement of Roads at Surrounding Area of Abdul Islam Park in Sector-9 Ps-98 at North Karachi 20.00 48 Improvement and construction of Road Between 3000 to 3100 in sector 3 & 4 Ps-98 at north Karachi (PS-98). 20.00 49 Improvement of Street lights system from Karachi University Silver Jubilee Gate towards Mosamyat.

19.84 51 Construction of Road from Service Road of Shahrah-e-Faisal Underneath Natha Khan Bridge to Railway Society behind COD, KMC. 8.17 52 Improvement & Construction road carpeting Umer Colony UC- 07, Jamshed Town. 20.00 62 Construction of Road from Khaskhali Goth to Ghulam Mohammad Sain Rakhio Goth (2.00.)KM 20.00 63 Construction of Road from Chanesr Goth to Ghulam Ali Kokhio (2.00)KMC. 20.00 64 Improvement / Rehabilitation of road Kabri Chowk & Pakora Chowk to Zainab Market 9 number Road NA-239 KMC West Baldia Zone 20.00 66 Reconstruction of Kabail Masjid Towards 13-D road in NA-239 KMC West Baldia Zone.

20.00 67 Reconstruction / improvement of road Different area in Keamari and Maripur Jurisdiction of NA-239 KMC West Baldia Zone. 20.00 69 60’ Dia. Thrust Boring across Railway Crossing near Urdu University & Improvement of Service Road in front of Chase Department Store & Sadqain Lawan Nipa, Gulshan-eIqbal.Phase II 19.98

AN OVERVIEW 2017-2018 Explanatory Memorandum Page 21 70 Construction Of Road and Carpeting In Block-1, 2,3,4 & 5 at Clifton, KMC South Karachi. 19.82 71 Construction of the Internal Road and link Roads & footpath Curve Stones & Drainage lines at Hassan Zaheer Road, Saddar Town, KMC South, Karachi.

18.57 72 Improvement of Sewerage lines & C.C flooring in the Different Areas of UC-4, 9,10 & 11 Saddar Town KMC South Karachi. 19.08 73 Construction Of Park at Gulshan-e-Faisal & Road Carpeting at Gulshan-e-Faisal Saddar Town, KMC South, Karachi. 16.51 74 Construction Of Road and Carpeting Of Hassan Zaheer Road, UC-11,Saddar Town, KMC, South, Karachi.

19.05 75 Improvement Of Street Lights System In Different Areas Of UC-4, 9, 10 & 11 Of Saddar Town ,KMC South, Karachi. 20.00 79 Improvement of Sewerage system and construction of road, internal and surrounding areas of Dhani Bux Goth, Gulistan -iJauhar, Karachi. 20.00 84 Repairing of road at Shahrah-e-Landhi and ISL road Landhi industrial Area Karachi. 19.99 86 Improvement and Installation of LED Street Lights from Yasinababd to Aisha Manzail. 20.00 88 Construction / Improvement of Road and Streets in UC-08, PS- 90 KMC (South), Kemari Zone.

19.97 89 Improvement of Ameer Khusro Road in Ps-116.

19.90 90 Improvement of Internal Roads in Sharfabad Society in PS- 116. 19.79 91 Rehabilitation of Roads in Different Areas of Block-11&12, Gulistan-e-Johar, Karachi. 19.95 92 Rehabilitation / Improvement of Roads in different areas of Orangi Town (UC-06 07 08) Karachi PS-95. 19.85 94 Improvement / Reconditioning of Roads Surrounding Streets of TABBA Heart Hospital, Karachi. 19.59 95 Improvement / Reconditioning of Roads block-07,08,11, F.B.Area, Karachi. 19.87 96 Improvement of Waheed Murad Road (Gul Plaza) in NA-249 District South Karachi.

20.00 97 Improvement of Chand Bibi Road upto SIUT in NA-249 District South Karachi. 19.95 98 Carpeting of Road & construction of road 2300 from 7000 to road 9000 at north Karachi 20.00 104 Rehabilitation of Road and CC Flooring in UC-01 (PS-110) Saddar Town. 20.00 108 Improvement of Road in the Areas of UC-06 (PS-95) Orangi Town, Karachi. 20.00 109 Construction of Road at Sector No.38/A Scheme No.33 Jahangir Town Karachi. 20.00

AN OVERVIEW 2017-2018 Explanatory Memorandum Page 22 110 Re-construction of Road in UC-01 Lyari Town. 20.00 111 Re-construction of Rd in UC-01 Malir Town (PS-121) Karachi 20.00 112 Improvement of Roads in the areas of UC-04 (PS-95) Orangi Town Karachi.

20.00 114 Improvement of Lavatories at Various floors from Ground floor to 10th floor in Civic Centre Building Karachi. 16.83 115 Improvement of Footpath Green Belt at Mehran Highway Karachi. 16.88 117 Improvement of Main Street Roads & Laying of Sewerage Line in Block -14, Gulistan-e-Jouhar, Karachi. (Balance Work) 20.00 118 Improvement of street lights system at Shahrah-e-Faisal from Regent Plaza towards FTC Flyover.

19.80 119 Construction of Additional Block in Sindh Governor’s House Karachi Meeting Hall (Block A) 19.99 120 Construction of Additional Block in Sindh Governor’s House Karachi (Block B) 19.99 121 Construction of Additional Block in Sindh Governor’s House Karachi (Block C) 19.64 122 Improvement of Roads around House No.43-9-E PECHS Block 6, Jamshed District East KMC. 4.31 123 Construction of cricket Ground at Block-L North Nazimabad Karachi Pavilion Jogging Track compound wall Allied works (Phase –II) 19.90 124 Rehabilitation of Nalas of the Akhtar Colony, Manzoor Colony, Kashmir Colony, Azam Basti & Junejo Town.

20.00 131 Improvement / Construction Sewerage line CC Flooring Road Carpeting of Sultanabad UC-02 Kemari Town Karachi 19.72 132 Improvement / Construction Sewerage line 9 12 15 DIA at Railway colony UC-04 19.98 134 Improvement / Construction Road Carpeting and Sewerage line Sachal Goth UC-12 Gulshan-e-Iqbal Town. 19.94 135 Improvement / Rehabilitation of Head Quarter Abdullah Shah Ghazi Rangers at PECHS Karachi 19.97 136 Widening & Reconstruction of road sector L-1 to L-I Chowrangi Surjani Town Gadap Town Karachi Phase I.

19.91 137 Improvement / Construction of CC Flooring at Faqira Goth, UC- 05 Gujro Gadap Town 19.98 138 Construction of CC Flooring at Shah Rasool Colony UC-09 Saddar Town. 19.78 140 Improvement of street light system Kashmir Colony Akhtar Colony Manzoor Colony Azam Basti Junejo Town Jamshed Town UC-01 & UC-02 19.99 142 Construction Of C.C Flooring Sewerage Line, Water Supply & Road Carpeting in UC-18, KMC Central. 19.99

AN OVERVIEW 2017-2018 Explanatory Memorandum Page 23 143 Construction Of C.C Flooring Sewerage Line, Water Supply & Road Carpeting in UC-31, Gujjro KMC East.

9.93 144 Construction Of C.C Flooring Sewerage Line, Water Supply & Road Carpeting in UC-17, Bhattiabad KMC East 9.99 145 Construction of C.C Flooring Sewerage Line, Water Supply & Road Carpeting in UC-16, KMC South. 9.94 146 Construction of C.C Flooring Sewerage Line, Water Supply & Road Carpeting in UC-17, KMC South 9.94 147 Construction of C.C Flooring Sewerage Line, Water Supply & Road Carpeting in UC-21, KMC South 9.95 148 Construction of C.C Flooring Sewerage Line, Water Supply & Road Carpeting in UC-31, KMC South 10.00 149 Construction of C.C Flooring Sewerage Line, Water Supply & Road Carpeting in UC-06, KMC West 9.94 150 Construction of C.C Flooring Sewerage Line, Water Supply & Road Carpeting in UC-07, KMC West 9.96 151 Construction Of C.C Flooring Sewerage Line, Water Supply & Road Carpeting in UC-29, KMC West 9.90 152 Construction Of C.C Flooring Sewerage Line, Water Supply & Road Carpeting in UC-32, KMC West 9.94 153 Construction Of C.C Flooring Sewerage Line, Water Supply & Road Carpeting in UC-11, KMC West 9.98 154 Construction Of C.C Flooring Sewerage Line, Water Supply & Road Carpeting in UC-17, KMC West 9.90 155 Construction Of C.C Flooring Sewerage Line, Water Supply & Road Carpeting in UC-21, KMC West 9.98 156 Construction Of C.C Flooring Sewerage Line, Water Supply & Road Carpeting in UC-31, Abidabad Baldia Town, KMC West.

9.94 159 Improvement / Reconstruction of Road Surrounding Area of Abbasi Shaheed Hospital & Backside of Anu Bhai Park, Liaquatabad Zone Central, KMC 20.00 160 Rehabilitation of Road Streets near Imam Bargah Jaffer-eTayyar Malir Karachi.

14.49 161 Construction of road Lines area UC08-09 Jamshed Town Karachi. 2.88 162 Carpeting and Patch Repair Works of Roads I/C Water Lines, Sewerage Lines & Flooring in Khandu Goth Block A, B & C, North Nazimabad, District (Central), Karachi. 17.94 163 Rehabilitation / Improvement of Roads, Construction of CC Streets & Providing and Laying Sewerage System in Mujahid Colony, Liaquatabad Zone, District (Central). 17.98 164 Rehabilitation / Improvement of Internal Roads in Akhtar Colony, UC-1, Jamshed Zone, Karachi.

18.04

AN OVERVIEW 2017-2018 Explanatory Memorandum Page 24 165 Rehabilitation / Improvement of Roads and Providing and Laying of Water & Sewerage Line in Manzoor Colony UC-2, Jamshed Zone, Karachi.

17.66 166 Carpeting and Patch Repair Work of Internal Roads I/C Water Lines, Sewerage Lines & Flooring of Block F, G & H, North Nazimabad Zone, District (Central), Karachi. 18.42 167 Construction and rehabilitation of drain from star Gate to Railway Crossing Shah Faisal Town District East KMC Moria Goth 11.14 168 Construction of road and laying of 4 6 & 16 DIA P.E water supply line at Sector 5/B North Karachi PS-98. Karachi. 20.00 172 Construction / Rehabilitation of Road 4000 Saba Cinema (Left Side Main Track) to Lyari River at North Karachi Zone, District Central Karachi.

19.74 173 Construction / Rehabilitation of Road 4000 Saba Cinema (Right Side Main Track) to Lyari River at North Karachi Zone, District Central. 19.45 174 Construction of Service Road & Storm Water Drain along Sector 5-B/3 & 5-B/4 from Road 3100 to Road 5000 North Karachi Zone, District Central, Karachi. 19.80 175 Construction / Carpeting of Service Road and Box Culverts along Mohammad Shah Graveyard from Road 2200 to Sector 7-A at North Karachi Zone, District Central, Karachi. 19.06 176 Rehabilitation Work on Main Roads Nawab Siddique Ali Khan Road, Altaf Ali Baralvi Road, S. M. Taufiq Road, Ibn-e-Sina Road, District (Central), KMC.

17.57 177 Rehabilitation Work of Link Roads of Nawab Siddiq Ali Khan Road, Altaf Ali Baralvi Road, S. M. Taufiq Road, Ibn -eSina Road, District (Central). 18.25 180 Improvement / repairing of Trenches at Nawab Mohbbat Khan JI Road from Hussainia Iranian Imam Bargha to Nigar Cinema District South 8.72 181 Improvement / Reconstruction of road in Nazimababd No.03 Near Baqui Hospital District Central. 20.00 182 Improvement / Reconstruction of road in KMC work Shop to Masjid-e-Khairul-Amal District Central Nazimabad No.04 19.99 183 Improvement of work of the Link Road between Rabia Flower and Iqra City of Abu Hasan Isphahani Road at Gulshan-eIqbal 5.00 184 Construction / Improvement of Mandir 2nd Floor at Soldier Bazaar Jamshed Zone District East Karachi.

5.63 185 Improvement / Construction of Surrounding roads / allied Works Rangers Head Quarters Nazimabad District Central 18.90 186 Repairing of Different Bridges in District East & Korangi KMC 10.00 187 Improvement of Maripur road by Repairing of Patches & Trenches leading upto KANNUP.

9.79

AN OVERVIEW 2017-2018 Explanatory Memorandum Page 25 188 Improvement & repair of road Super Highway cut to Jewani Heights upto Madras Chowk Scheme 33 Malir. 19.78 191 Rehabilitation / Construction / Reconstructions of Barracks at Headquarters Abdullah Shah Ghazi Rangers at PECHS Karachi Phase-II 19.96 197 Rehabilitation & Improvement of Services Road 4000 & Internal Roads, North Karachi 18.98 198 Rehabilitation & Improvement of Service Road 9000 in Sector 6-B Connecting of Road 4300 North Karachi industrial Area North Karachi Zone District Central.

19.07 199 Rehabilitation & Improvement Of Services Road 4000 & Internal Road North Karachi Industrial North Karachi Zone District Central.

18.80 201 Improvement of Internal Road Of Block-09, F.B Area, District Central Karachi. 18.19 202 Improvement of Internal Road / Streets & Sewerage System of Block-04, Gulshan-e-Iqbal Karachi. 19.59 203 Improvement of Road & Patch Work From Anda More to Nagan Chowrangi District Central Karachi 19.97 204 Improvement / Patch work from Imam Clinic to Farooq-e-Azam Masjid District Central Karachi 19.96 205 Improvement of Internal Streets & Sewerage System of BlockJ, North Nazimabad, District Central, Karachi. 19.43 206 Improvement of Road & Patch work from Water Pump to Peoples Chowrangi District Central Karachi 19.98 207 Improvement of Internal Roads / Streets Of Block-L North Nazimabad District Central Karachi 19.18 208 Improvement of Internal Roads of Block-06&07 Gulshan-eIqbal Karachi 19.48 209 Improvement Of Roads & Patch work from Peoples Chowrangi to Namak bank north Nazimabad District Central Karachi 19.94 210 Construction of Roads from Geo Road to Rabu Goth (1.75KM) 19.97 215 Construction of Metalled Road in Sector 4/C Naiabad Baldia Town KMC 19.69 216 Improvement of Streets Lights in Lyari Town.

20.00 218 Construction of Road Drainage system at Village Shahbaz Goth Near Northern Bypass Tool Plaza Gadap Town District Malir Karachi 1.8 KM Road Work 19.90 219 Construction of road and drainages system at village Shabaz goth near Northern Bypass too Plaza Gaddap Town District Malir Karachi 1.20Km Part A Road Works (1.8 to30) 19.95 220 Road Carpeting Akhtar Colony, Kashmir Colony, Junejo Town, UC-01,02 & 04 Jamshed Town, KMC East, Karachi 20.00 221 Road Carpeting in Mehmoodabad, Green Belt, Awami Chock, Baloch Colony UC-04 & 05 Jamshed Town, KMC East, Karachi 20.00

AN OVERVIEW 2017-2018 Explanatory Memorandum Page 26 222 Improvement of Sewerage System in Different Areas of Kashmir Colony, Manzoor Colony, Azam Basti, Chanesar Goth, Baloch Colony, UC-01,02,03,04 & 05, Jamshed Town, KMC East, Karahi. 19.99 223 Improvement of water Supply Dia 03”,04”,06” & 08” in The Different Areas of Kashmir Colony, Manzor Colony, Azam Basti Chanesar Goth, Baloch Colony, UC-01 to 05, Jamshed Town, KMC East, Karachi. 19.99 224 C.C. Flooring in Different Areas of Kashmir Colony, Manzor Colony, Azam Basti, Chanesar Goth, Baloch Colony, UC-01 to 05, Jamshed Town, KMC East, Karachi.

19.98 225 Road Carpeting in Azam basti, Chanesar Goth, Mehmoodabad, Azam Town, Nala Par, UC-03 & 04 Jamshed Town, KMC East, Karachi. 20.00 226 Construction / Replacement of old sewerage Pipe lines Dia 24" at Hassan Zaheer Road UC 11 Saddar town 20.00 227 Construction of Road CC Flooring in UC-30 PS-126 KMC West Kemari Town Karachi. 19.98 228 Construction of Road CC Flooring in UC-27 PS-126 KMC West Kemari Town Karachi 19.98 229 Construction of Road including Sewerage line in UC-27 PS- 126 KMC West Kemari Town Karachi 20.00 230 Construction of Road CC Flooring including Sewerage line in UC-06 PS-92 KMC West Karachi 19.90 231 Construction of Road CC Flooring including Sewerage line in UC-31 PS-112 KMC South Saddar Karachi 20.00 232 Construction of CC Flooring Providing and laying Sewerage line in UC-29 PS-112 KMC South Karachi 20.00 233 Providing and laying Machine Carpeting in UC-29 PS-112 KMC South Karachi 20.00 234 Providing and laying Machine Carpeting in UC-30 PS-112 KMC South Karachi 20.00 235 Construction Of Services Lane from Korangi Road to Expressway to Facilities Traffic Flow For Iqra University 20.00 Total (Roads & Bridges) = 2,765.14 Fire Brigade 251 Development of New Cells for Operation & Maintenance of Landfill Sites, KMC 137.67 253 Supply of Fire Fighting Suits & SCBA for Karachi.

20.00

AN OVERVIEW 2017-2018 Explanatory Memorandum Page 27 254 Providing of Alcohol-Resistant AFFF Fire Extinguishing Foam Concentrate. 19.90 255 Providing of Hazardous Material (HAZMAT) Equipment. 18.91 256 Providing of Decontamination Equipment for KMC 19.99 Total Fire Brigade = 216.46 Transport & Communication 261 Construction of Pedestrian Bridge Near Khatoon-e-Pakistan College Agha Khan Hospital At Stadium Road (Additional Work) 8.37 262 Installation / Improvement and Up-Gradation of existing Traffic Signals in Karachi Zone I 13.50 263 Installation / Improvement and Up-Gradation of existing Traffic Signals in Karachi Zone II 13.90 Total Transport & Communication 35.77 Total Schemes PP & H 3,037.37 Education Sector 275 Rehabilitation of GBSS Elementary Aligarh Colony, Orangi Town, Karachi.

20.00 279 Reconstruction / Renovations of School No.09/10 Mehmoodabad #06 Jamshed Town, Karachi. 20.00 280 Major Repair / Renovation of Government Boys Primary School (Bangali), Jamshed Town, Karachi. 20.00 281 Reconstruction / Renovations of school #47/48 Mehmoodabad No.6, Jamshed Town, Karachi. 20.00 285 Repair / Renovation of existing Building @ GLSS No.(13-14), Shah Faisal Town. 20.00 289 Rehabilitation of Existing Football Stadium, Syed Muhammad Shah Bukhari Ground Chanessar Goth Jamshed Town, Karachi. 20.00 290 Construction of Pavilion of Gull Baloch Football Ground at Siddique Goth Shah Faisal Colony, Karachi.

19.91 291 Community Center of Siddique village UC-07, Shah Faisal Town, Karachi. 16.07 294 Repair / Maintenance / Renovation of Jinnah (Boys/Girls) Primary & Secondary School No.2 Local Bodies UC-5 Jinnah Square Malir.

19.92 300 Construction of five Roomed Primary school and computer Lab at Govt. Boys Primary School Sujani L- 1 Gadap Karachi 19.95