The Public Accounts Committee (PAC) of the Sindh Assembly has expressed no confidence in the performance of local councils across the province, including Union Councils (UCs), Town and Municipal Committees, and Municipal Corporations.
The committee has directed all local bodies to submit monthly reports on the utilization of Octroi and Zila Tax (OZT) funds and warned that no allocations will be released to councils that fail to comply.
PAC Chairman Nisar Khoro said the Sindh government allocates Rs168 billion annually to local councils under OZT, including Rs80 billion for development projects. However, reports indicate that councils are spending less than 30% of the funds on actual development, sparking public concern over mismanagement.
He revealed that Municipal Corporations receive Rs100-120 million per month, Town and Municipal Committees Rs20-25 million, and Union Councils Rs1-1.2 million under OZT. Despite this, no utilization reports are being submitted, leaving the spending unaccountable.
The Local Government Department’s Additional Secretary admitted before PAC that councils were not submitting the required reports, while regional directors responsible for inspections had also failed to ensure compliance.
PAC member Qasim Saraj Soomro criticized the practice of funds being withdrawn “within 15 minutes” in several councils, with officers frequently transferred shortly afterward.
Khoro warned that misuse of taxpayers’ money would not be tolerated: “If councils do not use these funds for public welfare, they will be held accountable. The Sindh government cannot afford to face blame for mismanagement despite providing Rs168 billion annually.”
PAC further directed that councils submitting monthly reports must receive their next tranche of OZT funds without delay. The committee also instructed the Local Government Department to ensure regular inspections of councils by regional directors, computerize employee records and introduce biometric attendance, and take disciplinary action, including the suspension of the Chief Municipal Officer of Gambat Municipal Committee for failing to deposit Rs7 million in sales tax into the treasury.
The committee emphasized that stricter oversight was essential to ensure OZT funds serve the public interest rather than vanish into unaccountable expenditures.
