KARACHI: The Karachi Metropolitan Corporation (KMC) appears to be expanding its public-private partnership (PPP) model across its public health facilities, with its non-functional School of Nursing at Abbasi Shaheed Hospital (ASH) now proposed to be handed over to a private nursing institution.

The corporation is also set to provide Rs36 million in “grant-in-aid” to another private organisation already brought in to run Spencer Eye Hospital under a PPP arrangement.

The two developments, involving two different public facilities, have brought a striking question into focus: if KMC is turning to private partners to revive and operate its institutions, how much public money should continue to follow those facilities once they are handed over.

Under a draft memorandum of understanding (MoU), Vision College of Nursing & Allied Health Sciences is proposed to take over the School of Nursing at ASH for nursing education. The private institution has committed an initial Rs10 million for renovation and equipment and will pay Rs500,000 upfront and Rs125,000 per month as rent to the hospital, with the funds earmarked for patient medication and healthcare.

Move draws criticism from opposition in City Council

According to officials, the proposal aims to “revive an underutilised public facility, expand nursing education and produce more qualified nursing professionals”.

However, it comes against the backdrop of KMC’s recent PPP arrangement for Spencer Eye Hospital, where a private organisation was brought in to provide and improve healthcare services, followed by the proposed Rs36 million grant-in-aid from the municipal corporation.

The issue is now set to come before the KMC City Council, which is scheduled to meet on Friday, with both matters on the agenda for the House to consider.

The council has been asked to approve the arrangement concerning the School of Nursing at ASH as well as the Rs36 million grant-in-aid for the private organisation associated with Spencer Eye Hospital.

The KMC defended the arrangements, saying the properties in question had been lying abandoned or unused and that leasing them was intended to ensure better utilisation of public spaces.

A KMC spokesperson said the agreements had been executed in accordance with the law.

What exactly is KMC for?

The move, however, has drawn strong criticism from the opposition in the City Council, which has questioned the KMC’s growing reliance on the PPP model for the management of its institutions and properties.

City Council Opposition Leader Advocate Saifuddin said the council was being informed about such arrangements only after decisions had effectively been made, raising questions over transparency, competitive bidding and the protection of public assets.

“Our point is that when KMC itself is unable to run its own institutions, and they are handing over every institution and every piece of land to different organisations, then what exactly is KMC supposed to be?” he questioned.

Referring to the agenda items for the Friday session of the council, he said the KMC had included its number of properties under a proposal to transfer them to private organisations.

“Spencer’s Eye Hospital, which operates under the KMC, was handed over to a charitable organisation earlier this year and now they are giving them Rs36 million,” he said.

“In Orangi Town, 9,331 square yards of land is being handed over to another private organisation whose name was never heard before. And also that Nursing College of Abbasi Shaheed Hospital has been handed over to a private organisation, at a rent of only Rs 125,000. They have not brought the agreement before us, but they have handed it over on rent.”

Similarly, at the Karachi Institute of Heart Diseases, the entire building that was meant for the nursing college has also been rented out to someone for only Rs250,000, he added.

He also questioned the absence of a competitive or transparent process before the properties were handed over, arguing that KMC should have invited expressions of interest from other organisations before selecting any private trust or entity.

The opposition leader said the lack of such a process raised serious questions about the legality of the arrangements and indicated that his group was considering legal action.

“If you [KMC] genuinely intended to hand it over and were acting in good faith, then you should have placed an advertisement in the newspapers and invited expressions of interest from organisations,” he said.

“Therefore, this entire process is completely illegal, and I believe it falls within the ambit of corruption. Action should be taken against it. We will also examine what legal action can be taken in this regard, and we will take the matter forward accordingly.”

Published in Dawn, September 11th, 2026