Metropolitan corp faces Rs3.5b shortfall

The Lahore Metropolitan Corporation is facing increased financial difficulties after failing to meet its annual revenue target by Rs3.5 billion with millions of rupees due to be paid to contractors.

According to sources, the target set by the metropolitan corporation for tax collection in various sectors in the current financial year could not be achieved, causing concerns about difficulties in offering the citizens municipal services like street lights, road patchwork and construction, transport and prevention of epidemics. Lahore Commissioner Muhammad Ali Randhawa had given instructions to the officers of all departments after taking over the charge to meet the annual targets.

Official data shows that a target of Rs6.5 billion had been set for property transfer fees till June 30 this year but only Rs4.63 billion has been collected.

On the other hand, the target of charges from general bus stands was Rs950 million and the corporation managed to collect Rs1 billion.

Amid complaints of illegal constructions in the city, a target of Rs215 million had been set for the map fee but only Rs123.2 million could be collected. The target set from earning from shops operating on the corporation’s property was also missed.

The target of enforcement fines was Rs45 million but only Rs10.4 million could be collected in the first 11 months of the year. The target of Rs426.8 million had bene set for sanitation, public latrines and road cutting charges but Rs359.2 million has been collected under the head.

The metropolitan corporation also expected a non-development share from the Provincial Finance Commission (PFC) of Rs2 billion but received Rs1.72 billion, while its share in the urban immovable property tax also remained short of the Rs2 billion mark at Rs1.1 billion. Thus the corporation received Rs9.267 billion against the overall annual target of Rs13.802 billion. Thus the revenue targets from the government as well as the private sector could not be met by the officials concerned.

Meanwhile, millions of rupees are yet to be paid for the development work carried out in the past four months, the sources told The Express Tribune.

When contacted, Municipal Corporation Chief Executive Officer Ali Abbas Bukhari said the officers of all departments had been instructed to meet their targets by June 30 I view of the low tax collection so far. He warned that the employees failing to meet the targets would be held responsible.

Commissioner Randhawa asserted that the revenue generation had increased due to an increase in the property transfer tax. Officers of the town planning and all other departments have been instructed to meet their targets within the stipulated period.

Former mayor Colonel (retd) Mubbashir Javaid said the commissioner was responsible to achieve the targets in all sectors. He said illegal construction was rampant in the city but negligible building plan fee was being collected. The case with other sectors was the same, he added.

He said the commissioner should take action against the officers responsible for the situation.

Another former mayor of Lahore, Khawaja Ahmad Hassan, said political instability had affected the country's economy and its impact was being witnessed everywhere. All the political parties had to discuss the country's stability and economy, he added.

Published in The Express Tribune, June 19^th, 2023.