No one can sell or transfer their property or land leased by the Karachi Development Authority or Karachi Metropolitan Corporation if they have not paid their municipal utility bill.
The Karachi city government collects this money in order to finance building infrastructure and maintenance around the city (roads, green belts). It isn’t a large amount.
The monthly municipal utility charges for housing goes by plot size:
Residential units (houses, flats)
Rs0 for units up to 39 square yards
Rs70 for 40 to 80 square yards
Rs150 up to 120 square yards
Rs200 up to 240 square yards
Rs300 up to 500 square yards
Rs500 up to 1000 square yards
Rs800 over 1,000 square yards
Commercial sites or businesses (offices, restaurants and shops) must pay Re1 per square foot.
The third category applies to these units: industrial, agricultural, gardens, nurseries, wedding halls, clubs, thellas, dhobi ghats, hammams, cattle ponds and high-rise commercial plazas:
Up to 200 sq yards = Rs500
201 to 500 sq yards = Rs1,000
501 to 1,000 sq yards = Rs1,500
1,001 to 2,000 sq yards = Rs2,000
2,001 to 3,000 sq yards = Rs2,500
3,001 to 5,000 sq yards = Rs3,000
5,001 to 10,000 sq yards = Rs4,000
Above 10,000 sq yards = Rs5,000
The fourth type of establishment is: schools, colleges, hospitals, clinics, mosques and imambargahs. Rs500 for units up to 1,000 square yards
Rs1,000 for those that are 1,001 to 5,000 square yards
Rs2,000 for anything larger
KMC’s director for municipal utility charges & taxes is Nayab Saeed. He said that they have written the senior member of the Sindh Board of Revenue about the collection of municipal utility charges to be applied for mutations, sub-leases, transfers and the registry of government land.
Section 19-A of the Registration (Sindh Amendment) Act, 2013 says that no deed or document on a transaction for immovable property shall be registered if the utility bills have not been paid, he explained.
This much was confirmed by property dealer Arshad Sikandar who said that no leased property from KDA and KMC is being transferred or sold if the municipal utility bills are not cleared. He said that this rule is already mentioned on the KDA and KMC forms.
The municipal utility bill was introduced in 2009 under the Mustafa Kamal administration.