KARACHI: Mayor Wasim Akhtar has demanded that the Provincial Finance Commission (PFC) award be announced as soon as possible and funds distributed to the Karachi Metropolitan Corporation (KMC) and other fund-starved municipalities in Sindh to help them function effectively.

In a letter written to the provincial finance minister [Chief Minister Murad Ali Shah himself], who heads the Sindh PFC, the Karachi mayor said the PFC formula or award should be announced as early as possible so that equitable funds could be released to all the local councils of the province, including the KMC.

“The government of Sindh should provide the additional funds to all councils in the province till the finalisation of [the] PFC award to the extent of payment of salaries and to provide basic municipal services to their citizens in the first instance.”

Mayor Akhtar said the PFC entailed that distribution between the government and the local councils should be a factor or proceeds of the Provincial Consolidated Fund (PCF) into a Provincial Retained Amount (PRA) and a Provincial Allocable Amount (PAA) to be called Provincial Commission Award, thus, “Government of Sindh should, first of all, declare categorically the amount of PCF into PRA and PFC or local councils through the PFC Commission, which is the basis of PFC award.”

He said once the share between the PRA and the PFC or local councils had been decided by the PFC Commission, the provincial government should immediately convene the PFC Commission for recommendation on the PFC. He said once the due share of the PFC had been decided and the share of local councils determined, the Sindh government should decide the share of the municipal development funds out of the total Provincial Annual Development Programme or the budget on the pattern of Khyber Pakhtunkhwa PFC, which decided to apportion 30 per cent of the total KP provincial ADP.

“Due consideration should be given to the KMC considering its [Karachi’s] population and area and the fact that Karachi is the largest contributor of the federal taxes and infrastructure taxes specially the GST on sales and infrastructure cess which are the major contributors of the provincial receipts attributing 80 per cent or more to the provincial total receipt[s].”

The city mayor, who is a member of the PFC, also suggested that the PFC Commission should take into account the principles of the population, backwardness, need and performance of a municipal council.

“It is urgently required that the issue of distribution between the government and the [municipal] councils out of the proceeds of the Provincial Consolidated Fund into a Provincial Retained Amount and a Provincial Allocable Amount to be called the PFC Award be decided immediately and the proceeds thereof distributed proportionately among the councils.”

Published in Dawn, March 9th, 2017