Sindh Chief Secretary Mumtaz Ali Shah has made an important statement that reveals the scale of problems plaguing Karachi, the biggest metropolis in the country. He stated that $10 billion is required to improve the infrastructure of Karachi to bring it at par with international standards in the next decade.
In all likelihood, the Chief Secretary has quoted this statistic from a World Bank Study on transforming Karachi into a livable and competitive megacity, which estimates that Karachi needs around US$9 billion to US$10 billion in financing over a 10-year period to meet its infrastructure and service delivery needs in urban transport, water supply and sanitation, and municipal solid waste.
It is true that spending on infrastructure by the public sector in Karachi is well below the required levels, despite the recent large packages dedicated by the federal government. However, throwing large amounts of money and investment into Karachi, without bringing a change in regulatory style and administration, will not make the city’s problems go away, or make it any more liveable. Collections of the urban immovable property tax from Karachi are unforgivably low compared to the potential. Urban property tax is an important source of financing for cities, demonstrated by Punjab, which collects four times as much in this tax as Sindh every year.
Moreover, before fighting over more budget allocation for their cities, the provincial government must also be aware that bad city governance and management, which includes unclear roles, overlapping functions, and poor coordination among various agencies, are major reasons behind Karachi’s declining infrastructure. Municipal and city development functions are highly fragmented, leading to a lack of coordinated planning and integration at the city level.
In order to utilise any public investment in infrastructure, the government needs to ensure that its governance is coordinated. Instead of a persistent focus on expansion of infrastructure, there needs to be priority on preventive maintenance or rehabilitation of existing assets.
In all likelihood, the Chief Secretary has quoted this statistic from a World Bank Study on transforming Karachi into a livable and competitive megacity, which estimates that Karachi needs around US$9 billion to US$10 billion in financing over a 10-year period to meet its infrastructure and service delivery needs in urban transport, water supply and sanitation, and municipal solid waste.
It is true that spending on infrastructure by the public sector in Karachi is well below the required levels, despite the recent large packages dedicated by the federal government. However, throwing large amounts of money and investment into Karachi, without bringing a change in regulatory style and administration, will not make the city’s problems go away, or make it any more liveable. Collections of the urban immovable property tax from Karachi are unforgivably low compared to the potential. Urban property tax is an important source of financing for cities, demonstrated by Punjab, which collects four times as much in this tax as Sindh every year.
Moreover, before fighting over more budget allocation for their cities, the provincial government must also be aware that bad city governance and management, which includes unclear roles, overlapping functions, and poor coordination among various agencies, are major reasons behind Karachi’s declining infrastructure. Municipal and city development functions are highly fragmented, leading to a lack of coordinated planning and integration at the city level.
In order to utilise any public investment in infrastructure, the government needs to ensure that its governance is coordinated. Instead of a persistent focus on expansion of infrastructure, there needs to be priority on preventive maintenance or rehabilitation of existing assets.