The Karachi Metropolitan Corporation (KMC) plans to establish a commercial market with the proceeds of municipal bonds, corporation's officials said on Friday.
They said that the corporation plans to repay the bonds on maturity from the rental proceeds of the commercial market. Initially, KMC plans to float Rs500 million worth of bonds in the capital market of the country which will later be increased to up to Rs10 billion if the issue proves successful, officials told The Express Tribune. KMC formally approved the issuance of municipal bonds - making Karachi the first city in Pakistan to take this leap towards financial innovation, sustainability, and self-reliance.
The approval follows the mayor's recent announcement during his visit to the Pakistan Stock Exchange (PSX), where he expressed his commitment to modernise Karachi's infrastructure through innovative financial instruments and public-private participation.
By moving away from conventional reliance on limited fiscal allocations, KMC is embracing capital market tools that are widely used in developed economies to fund city projects in a transparent and sustainable manner.
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