Federal institutions owe KWSC over Rs20b

Various federal government institutions owe the Karachi Water and Sewerage Corporation (KWSC) over Rs20 billion in unpaid water bills, the Public Accounts Committee (PAC) of the Sindh Assembly learnt on Wednesday. These institutions - including Pakistan Steel Mills (PSM), Port Qasim Authority, Pakistan Railways, and Sui Southern Gas Company - have not cleared their dues since 2016.

The PAC, which met with Nisar Ahmad Khuhro in the chair, discussed the financial discrepancies highlighted in the KWSC's audit reports from 2019 to 2021. The audit revealed that the federal institutions owe huge amounts for water consumption provided by the KWSC.

The PSM alone has outstanding dues of more than Rs10 billion for the past decade. Other federal institutions with overdue payments include the Karachi Port Trust, PSO, Pakistan Railways, Printing Corporation, Marine Fisheries, Cotton Export Corporation, Karachi Shipyard, Cantonment Boards, National Shipping, PIA, Port Qasim Authority, Pakistan Machine Tool Factory, and others.

KWSC CEO Salahuddin Ahmad informed the committee that since 2016, the PSM alone has racked up dues exceeding Rs10 billion. Despite supplying water on a commercial basis to various industries, the mill has not cleared its bills. The KWSC also faces similar payment issues from other federal entities, which together contribute to the total outstanding liability of more than Rs20 billion.

The PAC directed the Sindh government to take up the matter with the federal government and its relevant institutions, urging them to recover the dues and ensure timely payments to the KWSC. Non-payment of dues by federal institutions is a grave injustice to Sindh and a form of exploitation, especially since these institutions continue to benefit from the water services provided by the KWSC, said PAC Chairman Nisar Khuhro.

Committee member Qasim Soomro said that the Sindh government should assert its rights and recover the outstanding amounts. The PAC has instructed the KWSC to send letters to the concerned federal institutions to expedite the recovery process.

The PAC also addressed concerns about Karachi's water supply. Khuhro raised questions about the timeline for the completion of the K4 water supply project, which is expected to help alleviate the city's water crisis. CEO Salahuddin informed the committee that the K4 project is expected to be completed by Dec 2025, with an estimated Rs80 billion requested from the federal government for its funding.

He added that the KWSC is also working on a master plan for the city's water needs through 2050, with 18 key terms of reference (TORs) aimed at addressing the growing demand for water. "We have already demolished 243 illegal water hydrants in the city, and continue to supply water to various areas through a fleet of 5,500 tankers at official rates," he added.

Despite these efforts, Karachi is currently facing a 50% water shortage, a situation that remains a huge challenge for Karachiites.