KMC allocates Rs18 billion for pension and employee benefits

The Karachi Metropolitan Corporation (KMC) budget has allocated billions of rupees for salaries, infrastructure development, public services, and city improvement projects.

KARACHI: The Karachi Metropolitan Corporation (KMC) budget has allocated billions of rupees for salaries, infrastructure development, public services, and city improvement projects. The budget outlines major spending plans aimed at improving municipal facilities and addressing urban challenges across Karachi.

According to the budget documents, the largest portion of KMC’s expenditure has been reserved for establishment costs, including employees’ salaries and administrative matters. A total of Rs37.29 billion has been allocated for this purpose.

The engineering department has been allocated Rs9.27 billion, while Rs7.75 billion has been earmarked for healthcare facilities and medical services. Municipal services have received Rs6.41 billion to support essential city operations.

For pension payments and a pensioners’ bailout package, KMC has allocated Rs18.21 billion. Development projects from KMC’s own resources have been assigned Rs8.59 billion, while a separate development portfolio has been set at Rs6.48 billion. Of this amount, Rs1.2 billion will be spent on development schemes in various union committees.

The budget document states that Rs29.52 million has been reserved for monthly payments of Rs100,000 to each union committee under the council section. In addition, Rs800 million has been allocated for cleaning and maintenance of stormwater drains across the city.

KMC has also proposed Rs750 million for shifting towards solar energy. The allocation includes Rs500 million for union committees and Rs250 million for KMC buildings and roads. For road infrastructure, Rs400 million has been set aside for construction and improvement, while Rs480 million has been allocated for annual maintenance of roads, footpaths, and bridges.

The budget also focuses on environmental improvement and city beautification. Around Rs1.15 billion has been allocated for parks’ development, beautification, and roadside plantation. Additional funds have been reserved for horticulture projects, the “Lungs of Karachi” initiative, the Chowkandi cemetery park project, urban forests, and Kidney Hill Park.

A special development grant of Rs100 million has been proposed for minority communities. The district development program includes Rs3.82 billion for ongoing schemes and more than Rs5.17 billion for new development projects.

Regarding revenue sources, KMC expects income from municipal taxes collected through electricity bills, advertisements, land-related activities, anti-encroachment operations, and charged parking. The corporation estimates receiving Rs5.95 billion through municipal taxes and advertisements, while land-related revenue is projected at Rs2.8 billion.

The budget also includes allocations for loan repayments, miscellaneous expenses, financial assistance for deceased employees, and the mayor, deputy mayor, and municipal secretariat offices.

Officials stated that the budget aims to strengthen Karachi’s infrastructure, improve public services, and support long-term urban development.