ISLAMABAD: The Metropolitan Corporation Islamabad (MCI) is bracing itself for a new financial crisis as the permission for taking loans from the CDA to run its day-to-day affairs has expired.

After a delay of months, the MCI was formed in June this year. In the absence of its own budget, the MCI has been running its affairs through loans from the CDA.

The ministry of finance had allowed the civic agency to provide loans to the MCI until November 30 with the hope that by that time the federal government would release funds to the MCI.

However, so far no funding has been arranged by the government for the new local government in the federal capital.

Deadline for taking loan from CDA expired on Nov 30

“We have taken up the issue with the government and are trying to get direct funds or persuade the government to at least extend the permission to get loans,” said Chief Metropolitan Officer (CMO) Suleman Khan Warraich.

The MCI has been trying to get at least non-development funds of Rs10 billion for the payment of salaries and meeting other expenditures such as repair and maintenance of water supply lines and machinery to carry out road reconstruction works etc.

However, the federal government, which held the first ever local government elections in Islamabad on the directives of the Supreme Court, seems not interested in resolving the issues being faced by the residents.

The performance of the cash-strapped local government has been almost zero as Mayor Sheikh Ansar Aziz’s attention has been divided between the two organisations after he was made the chairman of the CDA too.

On the other hand, the elected representatives are facing problems in getting the civic issues resolved.

The local government has failed to bring any changes to the life of the citizens.

In recent sessions of the MCI, the members complained that the citizens had started losing confidence in the local government system.

The city is facing an acute shortage of water even in the winter. “We do not know what would be the situation in the summer when there is a shortage of water in the winter. No investment is being made in the water directorate,” said Ali Nawaz Awan, the opposition leader in the MCI.

He said out of the total 172 tubewells, 73 were dysfunctional and should be repaired in the winter to avoid a severe water shortage in the summer.

However, the CMO said he had prepared a plan to repair the tubewells subject to the availability of funds.

“Yes, it’s an issue. Recently, I approved the plan to repair the tubewells and after getting funds we will fix them on a priority basis,” he said.

“Strengthening the local government is not the priority of the PML-N government. The rulers don’t want to empower the local representatives. It’s unfortunate that even one year, not a single rupee has been released to the MCI,” the opposition leader added.

But a senior official of the CDA said the civic agency itself was facing a financial crunch and even if a new permission was granted the CDA would not be in a position to provide loans to the MCI.

“We are facing an acute shortage of finances. Even for carrying out necessary development projects, we are waiting for the auction of commercial plots in the second week of this month,” the official said. He added that instead of depending on the CDA the mayor should utilise his connections in the government to get funds for the MCI.

Recently, the CDA member finance Dr Fahad Aziz through an official letter informed the CDA chief about the financial woes of the authority and suggested various options for generating revenues.

Published in Dawn, December 2nd, 2016