KARACHI: The Karachi Metropolitan Corporation (KMC) has collected approximately Rs4 billion in municipal tax from Karachi residents during the current fiscal year, according to municipal officials.
The tax is collected through electricity bills, a mechanism introduced to improve revenue collection and strengthen the financial resources available for municipal services and development projects.
Rs4 Billion Collected Against Rs6 Billion Target
KMC had set a collection target of Rs6 billion for the fiscal year. While the target has not yet been fully achieved, officials describe the current level of collection as a significant success.
Financial Adviser Gulzar Ali said that recovering around 60 percent of the revenue target is a major achievement, noting that such performance had not been witnessed in previous years.
He attributed the improvement to enhanced collection mechanisms and better coordination with relevant institutions involved in billing and revenue recovery.
Municipal Tax Linked to Electricity Bills
The municipal tax is charged through electricity bills issued to consumers across Karachi.
Officials say the system has helped improve compliance and made tax collection more efficient compared to traditional methods.
The revenue generated through this mechanism is used to support municipal operations, infrastructure maintenance, sanitation services, and development initiatives within the city.
Next Budget Expected to Reach Rs60 Billion
Gulzar Ali also revealed that KMC’s budget for the 2026–27 fiscal year is expected to be close to Rs60 billion.
According to him, the proposed budget is likely to be presented before the City Council on June 18 by Mayor Karachi Murtaza Wahab for approval.
The budget is expected to outline spending priorities, development plans, and operational expenditures for the coming financial year.
Major Development Spending Planned
Officials indicated that a substantial portion of next year’s budget will be allocated to development projects.
According to Gulzar Ali, approximately Rs37 billion will be spent on development initiatives through a combination of:
- Funds received from the Government of Sindh
- Revenue generated through KMC’s own sources
The planned spending is expected to cover infrastructure upgrades, civic improvements, road projects, drainage systems, public facilities, and other urban development schemes.
Focus on Urban Improvement
Municipal authorities say the increase in revenue collection will help strengthen KMC’s capacity to address Karachi’s longstanding urban challenges.
The city administration has repeatedly emphasized the need for sustainable revenue sources to improve municipal services and support large-scale development projects in Pakistan’s largest metropolitan area.
With budget preparations nearing completion, city officials are expected to provide further details on planned expenditures and development priorities when the budget is formally presented to the council later this month.
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