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Federal allocate Rs20.25 bln for development projects in Karachi

Karachi development budget
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Details of federal funding allocations for various development projects in Karachi have emerged as part of the budget for the upcoming fiscal year, starting from July 01, 2026.

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According to media reports, Rs7.5 billion has been allocated for the Karachi Urban Infrastructure Development Package.

S.NO PROJECTS NAME FUNDS
1 Green Line Bus Project Rs1.98 billion
2 Infrastructure rehabilitation in District West Rs0.2454 billion
3 Infrastructure rehabilitation in Nazimabad & Liaquatabad Rs0.22 billion
4 Projects in Landhi, Zaman Town & Korangi Rs0.20 billion
5 District Central projects Rs0.045 billion
6 District Malir projects Rs0.05 billion
7 Karachi Coastal Power Project Units I & II Rs0.01 billion (Rs10 million)
8 Greater Karachi Water Bulk Supply Scheme Rs10.00 billion
9 Karachi Urban Infrastructure Development Package Rs7.50 billion

A sum of Rs10 billion has been earmarked for the Greater Karachi Water Bulk Supply Scheme, while Rs10 million has been allocated for Karachi Coastal Power Project Units I and II.

The documents further show that Rs1.98 billion has been allocated for the Green Line Bus project. Funds have also been set aside for multiple road, street, drainage, and water supply projects across Karachi.

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For infrastructure rehabilitation in District West, Rs245.4 million has been allocated. An additional Rs220 million has been earmarked for infrastructure restoration in Nazimabad and Liaquatabad.

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The federal budget also includes Rs200 million for roads, water supply, drainage, and playground projects in Landhi, Zaman Town, and Korangi.

According to the budget documents, Rs45 million has been allocated for roads, streets, water supply, and drainage projects in District Central, while Rs50 million has been set aside for roads, streets, and drainage works in District Malir.

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On the other hand, the government of Sindh allocated more than Rs100 billion for infrastructure, transport, water supply, drainage, healthcare, education, and municipal development projects across the city.

Presenting the provincial budget in the Sindh Assembly, Chief Minister Syed Murad Ali Shah announced that Karachi would receive special attention under the Annual Development Programme (ADP) as the city remains the economic backbone of Pakistan.

The budget includes major investments aimed at addressing long-standing urban challenges and improving the quality of life for millions of residents.

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According to the budget documents, Karachi’s development portfolio consists of 816 schemes with a total estimated cost of Rs644.3 billion.

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For the upcoming fiscal year, Rs100.19 billion has been allocated specifically for Karachi-based projects, while overall allocations for city-related schemes amount to Rs108.1 billion.

The chief minister said the government was currently implementing 167 ongoing projects worth more than Rs500 million each, along with 110 mega projects valued at over Rs1 billion.

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These projects are focused on transport infrastructure, drainage systems, water supply networks, public health, education facilities, and municipal services.

A major portion of the budget has been earmarked for improving Karachi’s transport system. The government has allocated Rs1.2 billion for a flyover connecting Airport Road to Star Gate and Rs1.5 billion for a right-turn underpass from Malir Halt to Shahrah-e-Faisal.

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Another Rs1.65 billion has been allocated for a flyover at the Sir Shah Suleman Road crossing over Gujjar Nullah.

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