The Sindh government has allocated more than Rs100 billion for Karachi in its 2026-27 budget, promising a sweeping overhaul of transport, water supply, drainage, sanitation, and urban infrastructure. Presenting the provincial budget in the Sindh Assembly, Chief Minister Syed Murad Ali Shah announced a series of mega development projects aimed at easing traffic congestion, improving civic services, and accelerating the transformation of Pakistan's largest city.
Ongoing and New Development Schemes
The chief minister said Karachi currently has 816 ongoing development schemes with a combined cost of Rs644.3 billion. For the upcoming fiscal year, over Rs100.19 billion has been allocated for the city, including 167 major projects worth more than Rs500 million each and 110 mega projects exceeding Rs1 billion in cost.
Key Allocations
- Greater Karachi Sewerage Plan (S-III): Over Rs32 billion is being spent, with an additional Rs1 billion allocated to maintain project momentum.
- Lyari Transformation Package: Rs4.37 billion has been allocated.
- Development Schemes: Rs108.1 billion has been earmarked for 822 projects across the city.
Infrastructure and Traffic Management
To tackle Karachi's chronic traffic woes, the government has announced several infrastructure projects. A new flyover connecting Karachi Airport Road to Star Gate will be built at a cost of Rs1.2 billion, while a right-turn underpass from Malir Halt to Sharae Faisal will cost Rs1.5 billion. Additional allocations have been made for the Sir Shah Suleman Road crossing flyover over Gujjar Nala and improvements at key intersections along Shah Faisal Road.
Flood Mitigation and Drainage
Flood mitigation and drainage projects feature prominently in the budget. The government has allocated Rs1 billion for the third phase of major storm-water drain construction and rehabilitation, Rs1.1 billion for the restoration of Gujjar Nala and service roads, and Rs280 million for a storm-water drainage project from the M-9 Motorway to Thado Nala.
Sanitation and Waste Management
Sanitation and waste management have received significant attention, with Rs1.66 billion allocated for six modern garbage transfer stations and more than Rs9 billion reserved for the Solid Waste Emergency and Efficiency Programme. Upgrades to the Jam Chakro and Gond Pass landfill sites will cost Rs1.18 billion.
Water Supply Projects
On the water supply front, Rs575.2 million has been earmarked for expanding the water distribution network linked to the K-IV project. Additional funding has been allocated for upgrading pumping stations in Karachi's East and Central districts and for laying a new water supply line along the Lyari Expressway.
Public Transport Expansion
Murad Ali Shah also announced a major boost for public transport, revealing that 25 double-decker buses will begin operating in Karachi within the next three months, serving an estimated 30,000 to 35,000 passengers daily. The Pink Bus Service will be expanded, while another 100 electric buses will be added to the city's growing fleet. The budget also includes funding for the automation of fare collection systems across the Green Line, Orange Line, and Peoples Bus Service networks. Meanwhile, Rs13.2 billion has been allocated for the Red Line BRT project and over Rs3.5 billion for the Yellow Line corridor.
Social Sector Investments
In the social sector, Rs1 billion has been allocated for the Sindh Infectious Diseases Hospital in Karachi, while Rs1.4 billion has been set aside for a paediatric cardiac unit at the National Institute of Cardiovascular Diseases (NICVD). Development funds have also been allocated for a new medical college, the Karachi Education Complex, Bilawal Bhutto Engineering College Lyari, and Shaheed Zulfikar Ali Bhutto Law University.
The chief minister said the government remains focused on building modern infrastructure, strengthening public transport, and improving water and sewerage services. He added that the Rs60.7 billion Shahrah-e-Bhutto Expressway has already begun transforming Karachi's transport landscape, reducing travel times to nearly 25 minutes and serving around 25,000 vehicles daily.
