City’s low-income parking system retained
Giving the Lahore Parking Company the role of fulfilling the relevant responsibilities of the metropolitan corporation has cost substantial losses to the national exchequer.
According to the legal provisions, it is the responsibility of the metropolitan corporation to legally operate the parking system along with other municipal services.
However, the parking system in the city was handed over to the company so that it could be computerised and be operated in accordance with modern requirements, including marking of spots, employees in uniform, enforcement of timing issuance of computerised tokens.
In 2012-13, the corporation deposited about Rs70 million in the exchequer under the head of parking fees. The amount increased by about 25 per cent annually over subsequent years. At that time the parking fee for a motorcycle was Rs5 and for a car Rs10. The total number of parking stands in the city was 190.
Currently, Rs10 is charged for parking a motorcycle and Rs30 for a car, while the number of parking areas has increased to 205.
It is estimated that if the metropolitan corporation collected the revenue at the old rates during the past seven years, more than Rs550 million could have been generated by now.
However, the parking company given the responsibility paid only Rs247 million to the Metropolitan Corporation Lahore (MCL).
The corporation is reportedly demanding Rs550 million and the case is pending with the provincial local government secretary.
There are also reports that the issue may be taken to the National Accountability Bureau (NAB) due to suspicion of corruption in the company.
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According to the agreement between the parking company and the corporation, 75% of the income was to go to the latter.
Subsequently, the terms were amended to make the calculation after the deduction of expenses. Thus, the public exchequer was allegedly deprived of more than Rs300 million.
The current government intended to outsource the parking services but now the decision has been changed. According to the local government laws, the parking stands are the responsibility of the metropolitan corporation. However, the Lahore Parking Company has been asked to increase its annual income. Instead of seeking answers from the officers posted in the company, they are being assigned new responsibilities.
The Chief Minister’s Adviser for Public Sector Companies Dr Salman Shah was briefed on the new business plan. He said the parking company should now focus on performance instead of giving excuses. Parking stands should be operated through modern technology instead of the manual system and new public-private partnership parking sites would be introduced. The company was set up to carry out the same responsibilities but none of them was implemented earlier.
On the other hand, the number of illegal parking stands in the city is said to be around 50.
Complaints about parking stands and charging are also common. There are no markings or signposts along city roads regarding the parking facilities.
Traffic problems are being created by parking motorcycles in three rows instead of two and in some places four rows of motorcycles and cars are parked but no action is taken against those responsible.
The metropolitan corporation has received hundreds of complaints in this regard.
Published in The Express Tribune, February 3rd, 2021.