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Administrator Karachi gives actual position on OZT share

Karachi, January 11, 2013 (PPI-OT): KMC Administrator Muhammad Hussain Syed has said that the statement of provincial minister for local government regarding release of monthly funds to KMC was not the factual position and the truth was that the KMC was presently facing acute financial crisis as it could barely be able to disburse the November salary of employees in KMC and the December salary was also due.

He said we did not have money to pay salaries to employees and in this connection it had been repeated many a times that the finance ministry of Government of Sindh only provides Rs32 Crores and 86 Lacs each month in the head of Share of Octroi Zila Tax for payment of salaries to the KMC employees whereas a sum of Rs90 cores every month was required by KMC for payment of monthly salaries and pension of employees.

He said KMC used to meet its expenditures with the income from Octroi and at the time of withholding of Octroi tax an increase of two and a half percent was made in the head of General Sales Tax and it was decided to give 60 percent of the income generated in this head to KMC.

KMC was not provided with the amount of funds in accordance with the formula that had been worked out in this connection and instead the property tax was also taken from us and the all the new schemes of former KDA were also shifted to the Lyari Development Authority and Malir Development Authority. Moreover the Provincial Finance Commission Award was ended on 30th June 2011 and no further meeting of the award or decision in this regard was taken. As a result KMC received only a meagre amount from the provincial finance ministry.

He said the Government had also announced increase in the salaries on many occasions which comes to 200 percent. KMC also pay pensions to the retired employees of KMC and 18 towns besides paying salaries to its regular employees.

Administrator Karachi said it was also wrong that KMC was paying to contractors from the funds it received from Sindh Government. He said the employees’ salaries were disbursed first and only after than payments for other essential works were made. He said the employees of KMC have hard time due to non-payment of their salaries. If the finance department release the due share of KMC each month on a timely basis the employees could get their salaries on time.

For more information, contact:
Administrator Secretariat
Karachi Metropolitan Corporation (KMC)
City District Government Complex, 1st Floor, Civic Centre,
Gulshan-e-Iqbal, Karachi
Tel: +9221 9923 2400 -01
Fax: +9221 9923 2406
Email: administrator@karachicity.gov.pk

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