Govt seeks World Bank’s assistance to restructure $230mn loan 

The Competitive and Livable City of Karachi (CLICK) project faced delays due to the COVID-19 pandemic, monsoon rains, flooding, and changes in the local government law

The government has sought the World Bank’s assistance to restructure the $230 million “Competitive and the Livable City of Karachi” (CLICK) project, citing delays caused by the COVID-19 pandemic, monsoon rains, flooding, and changes in the local government law.

Initially approved on June 27, 2019, and effective from November 26, 2019, the CLICK project aims to enhance urban management, service delivery, and the business environment in Karachi. 

The project’s completion date was June 30, 2024, with $77.25 million (34% of the total loan) disbursed as of April 8, 2024.

The project includes five key components: grants and training for local councils, modernization of urban property tax systems, city competitiveness enhancement, solid waste management technical assistance, and an emergency response component, which has been activated and reallocated funds as needed.

Due to the pandemic beginning in March 2020, monsoon impacts in 2020, and a pivotal amendment on November 26, 2021, which increased the number of urban local councils from eight to 26, the project encountered early setbacks.

This amendment transformed eight district municipal councils into 25 town municipal corporations plus the Karachi Metropolitan Corporation, which now require coordinated project efforts.

Despite these challenges, the provincial government continues its commitment to the project’s goals. However, it has requested modifications including extending the loan’s deadline by 23 months, involving all 25 municipal corporations in the project, and centralizing grant management to improve efficiency and fund disbursement.

Monitoring Desk
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1 COMMENT

  1. Loans every where. Loans are not bad but it must reflect it’s utilization in the shape of improvement quality life of citizens. The other important thing is that it should contribute in enhancing total GDP. Very important that people must be informed about the pay back period of investment of loans amount.

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