The Sindh government has unveiled a massive development package worth more than Rs. 100 billion for Karachi in the 2026-27 provincial budget, focusing on transport, water supply, sewerage, drainage, sanitation, healthcare, education, and urban infrastructure projects.
Presenting the budget in the Sindh Assembly, Chief Minister Syed Murad Ali Shah said the investment aims to reduce traffic congestion, improve civic amenities, and accelerate the transformation of Pakistan’s largest city.
According to the chief minister, Karachi currently has 816 ongoing development schemes with a total cost of Rs. 644.3 billion. For the upcoming fiscal year, the city has been allocated Rs. 100.19 billion, including 167 major projects worth over Rs. 500 million each and 110 mega projects exceeding Rs. 1 billion each.
A significant portion of the funding has been earmarked for water and sewerage infrastructure. The Greater Karachi Sewerage Plan (S-III), one of the city’s largest civic projects, is already receiving more than Rs. 32 billion, while an additional Rs. 1 billion has been allocated to sustain progress. The Lyari Transformation Package has received Rs. 4.37 billion, and Rs. 108.1 billion has been earmarked for 822 development schemes across Karachi.
To address traffic congestion, the government plans to construct a flyover connecting Karachi Airport Road to Star Gate at a cost of Rs. 1.2 billion and a right-turn underpass from Malir Halt to Shahrah-e-Faisal for Rs. 1.5 billion. Additional funds have also been allocated for the Sir Shah Suleman Road crossing flyover over Gujjar Nala and improvements at key intersections along Shahrah-e-Faisal.
Flood management and drainage projects feature prominently in the package. The government has allocated Rs. 1 billion for the third phase of major storm-water drain construction and rehabilitation, Rs. 1.1 billion for the restoration of Gujjar Nala and adjoining service roads, and Rs. 280 million for a drainage project linking the M-9 Motorway to Thado Nala.
In the sanitation sector, Rs. 1.66 billion has been allocated for six modern garbage transfer stations, while more than Rs. 9 billion will be spent on the Solid Waste Emergency and Efficiency Programme. Another Rs. 1.18 billion has been reserved for upgrades to the Jam Chakro and Gond Pass landfill sites.
The water supply network will also be expanded through an allocation of Rs. 575.2 million linked to the K-IV project. Additional investments will support upgrades to pumping stations in Karachi’s East and Central districts and the installation of a new water supply line along the Lyari Expressway.
Public transport projects are another major component of the package. The chief minister announced that 25 double-decker buses will begin operations within the next three months, serving an estimated 30,000 to 35,000 passengers daily. The Pink Bus Service will also be expanded, while 100 additional electric buses will be added to Karachi’s transport fleet.
The budget further allocates funds for automated fare collection systems across the Green Line, Orange Line, and Peoples Bus Service networks. The Red Line BRT project has been allocated Rs. 13.2 billion, while the Yellow Line BRT corridor will receive more than Rs. 3.5 billion.
In the social sector, Rs. 1 billion has been allocated for the Sindh Infectious Diseases Hospital, while Rs. 1.4 billion has been set aside for a pediatric cardiac unit at the National Institute of Cardiovascular Diseases. Additional funding has been earmarked for a new medical college, the Karachi Education Complex, Bilawal Bhutto Engineering College Lyari, and Shaheed Zulfikar Ali Bhutto Law University.
Murad Ali Shah said the government remains committed to strengthening Karachi’s infrastructure and public services. He noted that the Shahrah-e-Bhutto Expressway, developed at a cost of Rs. 60.7 billion, has already improved traffic flow, reducing travel times and facilitating the movement of approximately 25,000 vehicles daily.
