Karachi has emerged as one of the biggest beneficiaries of the Sindh Budget 2026-27, with the provincial government allocating more than Rs100 billion for infrastructure, transport, water supply, drainage, healthcare, education, and municipal development projects across the city.
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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.
Karachi Development Portfolio Worth Rs644 Billion
According to the budget documents, Karachi’s development portfolio consists of 816 schemes with a total estimated cost of Rs644.3 billion.
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.
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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.
These projects are focused on transport infrastructure, drainage systems, water supply networks, public health, education facilities, and municipal services.
Major Focus on Transport Infrastructure
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.
Another Rs1.65 billion has been allocated for a flyover at the Sir Shah Suleman Road crossing over Gujjar Nullah.
Several other transport projects have also been included, including new interchanges connected to the Malir Expressway, improvements at the Shahrah-e-Bhutto-Korangi Causeway junction, and underpasses on Khayaban-e-Ittehad and Khayaban-e-Shahbaz. These projects are expected to reduce traffic congestion and improve travel times across the city.
Drainage and Flood Management Projects
To tackle Karachi’s persistent flooding and drainage issues, the Sindh government has allocated funds for the rehabilitation of major stormwater drains, restoration of Gujjar Nullah and its service roads, and the M-9 to Thaddo Nullah drainage project.
Officials believe these initiatives will help improve rainwater management and reduce urban flooding during the monsoon season.
Water Supply and Sewerage Improvements
The budget also places strong emphasis on water supply and sewerage infrastructure. Funding has been allocated for the expansion of the K-IV water supply project, rehabilitation of trunk water mains, upgrading pumping stations in Karachi East and Central districts, and construction of a new water supply line along the Lyari Expressway.
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Additional funds have been earmarked for the Karachi Water and Sewerage Services Improvement Project (KWSSIP) Phase-II and the Greater Karachi Sewerage Plan (S-III), both considered critical for improving water availability and sanitation services in the metropolis.
Public Transport Expansion
Public transport remains another priority area. The Sindh government has allocated Rs13.2 billion for the Red Line Bus Rapid Transit (BRT) project and more than Rs3.5 billion for the Yellow Line BRT corridor.
These projects are expected to provide modern and affordable transportation options for Karachi residents while reducing traffic pressure on major roads.
Healthcare Investments in Karachi
The health sector has also received significant allocations.
The budget includes Rs1 billion for the Sindh Infectious Diseases Hospital and Rs1.4 billion for the Paediatric Cardiology Unit at the National Institute of Cardiovascular Diseases (NICVD) Karachi.
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Several healthcare expansion projects have also been included to strengthen public health services.
Education and Institutional Development
In the education sector, funds have been allocated for a new medical college, the Bilawal Bhutto Engineering College in Lyari, the Karachi Education Complex, and development projects at major institutions including the University of Karachi and Jinnah Sindh Medical University.
Solid Waste Management and Urban Sustainability
The budget also includes investments in solid waste management. The government plans to establish six modern garbage transfer stations, upgrade landfill sites at Jam Chakro and Gond Pass, and implement modern waste management initiatives under a broader urban sustainability programme.
Speaking during the budget session, Chief Minister Murad Ali Shah said the investments would help address Karachi’s infrastructure challenges while supporting economic growth, employment generation, and improved public services.
