The government has requested a six-month extension from the World Bank for the $438 million Karachi Mobility Project (KMP), moving the closing date from December 31, 2025, to June 30, 2026, to avoid disruptions in construction of the Bus Rapid Transit (BRT) Yellow Corridor and related infrastructure.
The project, approved in June 2019 and backed by an International Bank for Reconstruction and Development (IBRD) loan of $382 million, also includes $18.4 million in Sindh government counterpart funding and $37.5 million in private sector contributions. The extension comes as authorities prepare a $173.2 million additional financing package, which could extend the project’s duration to December 31, 2028. No changes are planned to the project’s scope, objectives, components, safeguards, procurement rules, or implementation arrangements.
Despite early delays caused by staff turnover, limited political support, and COVID-19 disruptions, the project has gained momentum. According to World Bank officials, both Project Development Objective (PDO) progress and implementation performance are rated “Moderately Satisfactory.”
Major milestones include the completion and partial opening of the Jam Sadiq Bridge, active construction of two BRT depots, and procurement for critical corridor packages. An Accelerated Implementation Plan has improved disbursement and oversight. Around $115 million—roughly 30 percent of IBRD financing—has been disbursed to date.
The six-month extension is intended to maintain momentum while the additional financing is prepared. World Bank management approved a formal exception under its Investment Project Financing Directive, citing satisfactory borrower performance, the absence of outstanding audits, and a clear plan for project execution.
Environmental and social risks remain rated “Substantial” due to the complexity of construction in Karachi’s dense urban areas. Mitigation measures, including compensation and livelihood rehabilitation plans, a grievance redress mechanism, a Gender Action Plan, and climate resilience features such as elevated corridors and improved drainage, are reported on track.
