Salaries, pensions unpaid as KMC deficit increases to Rs7 billion

KARACHI: The Karachi Metropolitan Corporation (KMC) is facing a deficit of Rs7 billion, making it difficult to pay salaries for employees and pensions.

According to the details, the KMC owes Rs 3.5 billion including salaries, pensions and other dues of retired employees. Almost 5,600 retired employees and those who died on duty are still deprived of their legal obligations. Hundreds of development contractors across the city have not been paid their dues.

KMC also has to pay special ‘Coronavirus Risk Allowance’, earlier announced by the Sindh government for the frontline doctors and paramedical staff. On the other hand, the Sindh government has not increased the monthly share of ‘Octroi and Zila Tax’ (OZT) for the past several years.

The Sindh government’s move not to legally increase the monthly portion also makes it difficult for the Metropolitan Corporation to pay salaries every month. Due to the financial crisis, the municipality has not been able to make payments and its losses have swelled to over Rs7 billion.

Earlier on June 18, Karachi mayor Wasim Akhtar expressed concern that the Karachi Metropolitan Corporation (KMC) would face further a shortfall in the payments after the government announced a ten percent increase in government employees’ salaries, adding that the funds to pay those salaries may not be released.

“Salaries were increased last year too but the KMC was not provided with the due amount, which is why the dues of the employees have soared to more than Rs3 billion that are yet to be paid to them,” he said.

“The provincial government has once again increased the salaries by 10 percent, and if we are not given a special grant for the purpose, we will be unable to apply the increment,” he warned.