Karachi:
The former Federal Secretary, the provincial minister of the caregiver and the current president of the Policy Advisory and Investigation Council, Muhammad Younus Dagha, said that Karachi has incurred an estimated financial loss of RS3,360 billion, due to the suspension of GST’s direct transfers, development of development and poor administration of infrastructure development (IDC).
Speaking at the launch of his research work, Dagha said that the Provincial Finance Commission (PFC) has remained dysfunctional since 2009 due to structural weaknesses. During this time, he said, the Government had removed several central functions from local organizations, which include water supply, sanitation, solid waste management, master planning, building control, transport, mass transit, earth control, education and medical care. This centralization, he argued, has led to a constant decrease in social indicators, particularly in education and health.
Dagha explained that the IDC, introduced in 1994 to finance the Karachi infrastructure, has not been used for its planned purpose. Instead of creating a dedicated fund, he claimed, the collections have been illegally diverted in provincial accounts. “Only last year, RS170Billion were collected through IDC, while the total collections are estimated at around RS1 Trillones to date,” he revealed.
According to him, Karachi today requires between $ 9 and $ 10 billion, approximately RS1,050 billion, to close its service and infrastructure deficit. “Karachi’s lack of transformation in a habitable city will continue to erode Pakistan’s competitiveness and economic growth,” he warned.
