Municipal finance refers to the revenue and expenditure decisions of municipal governments. It covers the sources of revenue that are used by municipal governments – taxes (property, income, sales, and excise taxes), user fees, and intergovernmental transfers. It includes ways of financing infrastructure through the use of operating revenues and borrowing as well as charges on developers and public-private partnerships. In certain markets, infrastructure is also financed through floating of Bonds backed by sovereign guarantees of the Governments.

In Pakistan in general, while in Sindh in particular, local revenue generation of municipalities is always inadequate to finance its budgetary expenditures and infrastructure development. Large dependence of municipalities has historically been on intergovernmental/provincial transfers.

The Directorate intends to carry out Municipal Finance Assessment Study for all District Head Quarter Towns of Sindh, in formation of 04 clusters i.e. North, South, Central, and Karachi.

The study would also attempt to identify key vulnerabilities and the most fundamental challenges currently faced by Sindh municipalities, and includes;

• Overall Situation Analysis of the Municipalities Revenues & Expenditures
• Trend Analysis and SWOT
• Present and Potential capacity of the existing infrastructure and resources of the Municipalities
• Present and Potential Revenues including Own Source Revenues of the Municipalities
• Detailed proposals and recommendations, after proper discussions with the stakeholders, for financial self-sufficiency and improved Service delivery of Municipalities.
• Recommendations identifying potential sources of Revenues, suggesting future trends.
• Detailed proposals/recommendations on enabling policy framework.
• Preparation of Asset Inventories (Secondary Data) of the Municipalities.

• Strategic and Spatial Urban Planning
• Development Regulation and Control
• Economic Regeneration and Investment
• Data and Information Management
• Urban Transport & Mass Transit
• Water Supply and Sanitation
• Municipal Finance & Urban Governance
• Housing & Katchi Abadis

The mandate and scope of the Directorate is to establish a process for province-wide urban planning and development within a short, medium and long and term framework by means of preparation of sectoral policies, plans and studies.; and support Government of Sindh in implementation of development projects in view of the enacted policies and plans as well as overall developmental needs of the population. More specifically, mandate and scope of the Directorate includes the following:

• Provision of overall guidance and technical support on policy and planning for urban development and more effective urbanization in Sindh;
• Establishment of a process for province-wide urban development including economic regeneration and investment management; urban governance and municipal services in short, medium and long terms;
• Establishment and implementation of urban policy, regional and town planning information systems;
• Compilation and management of urban knowledge, information tools and data base, and promotion of reforms;
• Providing support to provincial government / departments, cities / local administration and management on urban issues including among others preparation of development / master plans, surveys, GIS maps and studies;
• Co-ordination and networking with all the departments and institutions vis-a-vis urban development and planning issues;
• Provision of policy framework targeting the urban development in Sindh;