Share this story!            

CDGK’s construction liabilities hit Rs 1.25bn

* Faces difficulties in paying salaries to employees of KMC, KDA

By Irfan Aligi

KARACHI: The City District Government Karachi (CDGK) is facing a severe financial crunch as its construction liabilities have piled up to Rs 1.25 billion, said sources privy to the financial matters of CDGK on Monday.

The contractors that constitute an ultimate pillar of CDGK are annoyed as their dues are increasing and the hope of settlement is diminishing. CDGK's Finance and Recovery Department has passed various bills of contractors, but the cheques are being withheld over fears that they will bounce.

The reason behind the rising liabilities is said to be the increasing salaries of its employees. The government has increased the employees' salaries by 60 percent during the last three years to Rs 1.2 billion till date, sources added.

The employees of the defunct Karachi Municipal Corporation, which falls under the city government, receive Rs 380 million salaries, defunct Karachi Development Authority Rs 110 million and the remaining departments Rs 720 million. For the KMC employees, the Sindh government releases funds worth Rs 270 million, while the requirement is Rs 380 million. Thus the acute deficit comes to Rs 110 million, which CDGK has to meet through its own resources each month, said the sources. The KDA employees are also facing extreme difficulties due to the fact that the Sindh government has stopped the release of Rs 950 million-protected amount-which were released in 2007-08, but now these funds are pending till date and the CDGK has to meet its expenses also, claimed the sources.

However, CDGK had disbursed a portion of salaries of 43,000 employees falling under the category of 'devolved portion'. The said employees were paid salaries for October worth Rs 720 million last Friday, said the sources. Sources said that the delay in disbursing salaries was due to hindrance in release of Single Line Transfer Fund (SLTF) by the Sindh government, which the CDGK received last Friday (November 6). After departmental procedures, CDGK's employees would get their salaries till Thursday.

Unless the Sindh government raises the amount of funds in favour of CDGK in terms of SLTF and Octroi and Zilla Tax (OZT), the employees especially those in KDA and KMC would continue experiencing hardships, commented the sources. It was for the first time in the CDGK's history that the employees could not be paid Eid salaries in advance while it would be equally impossible for the CDGK to favour these employees with advance salaries on the occasion of Eidul Adha this year. It is also pertinent to mention that the Sindh government could help CDGK gain momentary financial relief by lifting the ban on certain CDGK projects as the Sindh government had imposed a ban on lease that prevented CDGK to sell out certain projects of hefty amounts such as Saddar Car Parking Plaza and Shahabuddin Market adjacent to Empress Market in Saddar Town.

Home | Karachi

Share this story!