Karachi will not see any new mega development projects in the provincial budget for fiscal year 2025–26, marking the third year in a row without fresh infrastructure schemes for the city under the “Mega Schemes for Karachi City” category in the Annual Development Programme.
However, the Sindh government has increased funding for ongoing mega schemes, allocating Rs 8.288 billion for nine projects, up from Rs 1.389 billion for 11 projects last year.
The largest portion of the funds, Rs 1.89 billion, has been allocated for the construction of a junction at Shahrah-i-Bhutto and Korangi Causeway Bridge near Qayyumabad. Other key allocations include Rs 1.5 billion for a bridge on Malir River at N-5 (Murghikhana) and Rs 1.3 billion for the Korangi Causeway Bridge.
Six other ongoing projects also received funding. These include Rs 922.05 million for the rehabilitation of Nehr-i-Khayam, Rs 847.6 million for a storm-water drain from M-9 to Thaddo Nalla via Mehran Drain, and Rs 666.08 million for a sports complex at Bakhtiari Youth Centre.
Additionally, Rs 508.9 million is allocated for rehabilitating a drain at Manzoor Colony, Rs 450.65 million for main road works in Sachal Goth, and Rs 158.68 million for the construction of Allama Iqbal Park in Federal B Area.
Despite their importance, long-delayed projects like the Karachi Circular Railway, Greater Karachi Sewerage Plan (S-III), and Greater Karachi Water Supply Scheme (K-IV) were not mentioned in Chief Minister Murad Ali Shah’s budget speech. The budget books, however, show Rs 450 million allocated for S-III and Rs 100 million for Phase-I of K-IV, which targets 260 million gallons per day.
The chief minister said the government plans to launch Karachi’s first seawater desalination plant to explore desalination as a solution to the city’s water shortage. Investor solicitation is expected to begin in calendar year 2025, though the cost of the project was not disclosed.
The budget includes a Rs 12 billion Karachi Urban Infrastructure Development initiative, but project details and funding breakdowns have not been released.
In public transport, the provincial government announced the addition of 500 new electric buses for Karachi. The CM said that 1,000 electric buses would be introduced across the province in phases, with 500 designated for Karachi.
The plan includes a rent-to-own model, with 100 new 12-meter buses to be operational by July. The Bus Rapid Transit network is ongoing, with the Yellow Line nearing completion and the Red Line 50 percent complete.
On local government funding, the Sindh government provided Rs 148 billion in grants to local councils during the outgoing fiscal year, including Rs 26 billion to the Karachi Metropolitan Corporation for operational and development needs.
