Improving Karachi

A WhatsApp group shared a picture of Karachi of 1937. It looks like a European town-immensely neat and clean. An indigent feeling arises over its present abysmal and deplorable conditions. Called the city of culture and lights once and it being Quaid-e-Azam M.A. Jinnah's birthplace, Karachi is revered as it is the last abode of the Quaid and economic capital of Pakistan. Karachi has been ravaged, destroyed and terminally afflicted. Like a patient it needs care and attention. No amount of money can change its lot unless abundant empathy is shown by all.

A few weeks ago, Prime Minister Imran Khan announced an historic package of over 1 trillion rupees for Karachi. It was followed by a debate over the custody of the purse. While that debate goes on and rains are over, it is most likely that Karachiites will be soaking during the next monsoon.

The source of this huge package is still unclear. As reported in the media, this package has four main components. PSDP (federal and provincial), money received from a real estate developer pursuant to the Supreme Court order, funds left from the amounts allocated for Covid-19 and lastly, loans expected to be received from the World Bank IBRD and other international institutions.

Treating public money as trust and its proper use without any pilferage has always been a problem. Our Constitution provides elaborate provisions for raising and expending state money (Articles 73-86). It has not been asked from where this money would come and how can this be diverted to Karachi. No system of accountability has been placed to ensure that the allocated funds are expended on Karachi only. Under the Constitution, the control over the purse lies with Parliament. One might have missed out, but it appears that no discussion or debate about this package took place in Parliament. So, it appears that the federal government by-passed Parliament. There is no concrete plan known in the public domain to permanently address Karachi and improve its infrastructure.

Karachi is the main source of tax revenue because it is a port city and for that reason all major financial institutions, including the State Bank of Pakistan, have their headquarters in Karachi. Sindh has its significant share in the NFC Award because Karachi is its provincial capital and the revenue generated by Karachi is treated as the revenue accounted for Sindh. Rightly so. No other province has this advantage. So logically, the primary duty to spend money on Karachi's well-being lies with the provincial (Sindh) government. But the Sindh government is headed by a political party which has now a marginal political support in Karachi and the political party which ruled this city for almost over three decades is in disarray and hardly represents or has the support or sympathy at places where it matters. The people of Karachi, by and large, are soft, educated and civilized and as inferred from its recent past, politically exploitable. The city is resided by several (business) communities, professionals, working classes, laborers, who are so immersed in their routine life that they are prone to being exploited by terror, corruption and maltreatment by various forces and mafias. The political divide on linguistic and ethnic bases is so deep that any political institution, be it local government, provincial government or federal government, would find it hard to function smoothly. Huge vested interests, politics, prejudices and hate that have accumulated over the past several decades will not permit any consensus or cooperation. Thus, a proper solution is needed. Karachi needs to be put above politics.

There are possibly two ways to manage and resolve Karachi's present problems after taking their stock. It is almost certain that the allocated funds are insufficient to resolve all issues of infrastructure. Actually, the safety and proper use of this money is itself a problem. It is thus imperative that a foolproof system is put in place to protect this money. Karachi needs a constant support at least for ten years. It is a seaport city. Seaports fall within the legislative and executive domain of the Federal Government, and therefore, a federal agency can be set up under a federal legislation to deal with Karachi's problems including planning and development of a durable and modern infrastructure. Funds allocated for Karachi may be entrusted to this authority with an oversight by the Auditor General of Pakistan and Parliament by making it obligatory to lay periodical reports before Parliament. This authority should be headed by a civilian, having qualification and experience in urban planning and management. If the man on the top does not know his job then the rest will not do their jobs. It is a business that needs a master not a Jack. Karachi's problems are seemingly unending, and therefore, this Authority would serve the people of Karachi till their miseries are over.

Every job needs money. The federal Government cannot go on doling out money for Karachi. The province of Sindh would not permit any deductions in its share in the Award for that will lead to another problem and leave Karachi in the lurch. Funds allocated for Karachi can be treated as seed money and with it the proposed authority can start cleaning the mess that will build credibility based on performance for that authority. It can be vested with the power to levy development cess for Karachi.

The downside of this proposal however is that the experience of development authorities or corporations headed by serving government officials or elected office-bears has miserably failed in Pakistan largely because of the people's attitude towards public money which is plundered with impunity due to lack of effective checks and accountability. Unless voting and electoral offices are detached from development, jobs and money corruption shall continue unabated. Thus, the idea of a development authority like CPEC Authority can be a viable option provided some checks are created to protect public funds.

The other more effective and permanent solution is to provide a proper local government system under the Constitution and put in place proper checks over the use of funds. From allocation to approval and disbursement of funds there must be transparency. People of Karachi are the real stakeholders and they have every right to make all the decisions about Karachi. They must be allowed to make their decisions and determine their fates. They must be held accountable for their political decisions and choices. Thus, a permanent solution of Karachi's woes and of all other cities, towns and villages lies in providing a local government system under the Constitution. Local government system is in fact also a nursery for democratic institutions. Article 140 A needs to be expanded by providing an elaborate chapter on local government. Billions of rupees are recovered from property and other taxes and sale of property. It is also imperative to set up provincial finance commissions for an equitable distribution of the revenue of the province amongst the provincial and local governments in different cities, towns and union councils. Along with it, a system of checks and balances needs to be put in place. Public money must be accounted for without exception. It creates trust in people and institutions.

Good intentions without changing the political culture and making it answerable to the people, in whose name Governments are run, the dream of true democracy shall remain elusive.

Copyright Business Recorder, 2020