Islamabad: The Sindh government requested World Bank to issue $200 million loan for Karachi.
The Sindh government demanded the $200 million loan for improving the performance of different institutions such as KMC and DMCs. There is a worst municipal situation in Karachi and its governance institutions such as Karachi Metropolitan Corporation (KMC) and District Municipal Corporations (DMCs).
According to sources, the World Bank agreed in principle to issue a loan. In addition, a process in this matter had begun. International Development Association (IDA) will finance the project. City’s local governments have a short financial management capacity. In addition, it also has a limited authority over major sources of revenue. Karachi needs around $9 billion to $10bn over the next years.
The project will significantly assist the local governments’ weak municipal infrastructure and limited financial resources for the primary expenses. It would focus on the enhancing of financial and institutional capacity of KMC and 6 DMCs for the better infrastructure.