The Sindh government has allocated more than Rs. 100 billion for Karachi in the 2026-27 budget, covering transport, water supply, sewerage, drainage, sanitation, healthcare, education and urban infrastructure projects.
Presenting the provincial budget in the Sindh Assembly, Chief Minister Syed Murad Ali Shah said the development push is aimed at easing traffic congestion, improving civic services and accelerating Karachi’s transformation.
He said the city currently has 816 ongoing development schemes with a combined cost of Rs. 644.3 billion. For the next fiscal year, Karachi has been allocated more than Rs. 100.19 billion, including 167 major projects worth over Rs. 500 million each and 110 mega projects costing more than Rs. 1 billion each.
A major allocation has been made for the Greater Karachi Sewerage Plan, or S-III, where more than Rs. 32 billion is already being spent. Another Rs. 1 billion has been allocated to maintain project momentum. The Lyari Transformation Package has received Rs. 4.37 billion, while Rs. 108.1 billion has been earmarked for 822 development schemes across the city.
For traffic management, the government will build a flyover from Karachi Airport Road to Star Gate at a cost of Rs. 1.2 billion and a right-turn underpass from Malir Halt to Sharae Faisal for Rs. 1.5 billion. Funds have also been allocated for the Sir Shah Suleman Road crossing flyover over Gujjar Nala and improvements at key intersections along Shah Faisal Road.
Drainage and flood mitigation projects include 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 its service roads, and Rs. 280 million for a storm-water drainage project from the M-9 Motorway to Thado Nala.
In sanitation and waste management, Rs. 1.66 billion has been allocated for six modern garbage transfer stations, more than Rs. 9 billion for the Solid Waste Emergency and Efficiency Programme, and Rs. 1.18 billion for upgrades to the Jam Chakro and Gond Pass landfill sites.
For water supply, Rs. 575.2 million has been set aside to expand the distribution network linked to the K-IV project. Additional funds will go toward upgrading pumping stations in Karachi’s East and Central districts and laying a new water supply line along the Lyari Expressway.
Karachi’s public transport system will also receive new investment. The chief minister said 25 double-decker buses will begin operating within three months, serving an estimated 30,000 to 35,000 passengers daily. The Pink Bus Service will be expanded, while 100 more electric buses will be added to the fleet.
The budget also includes funds to automate fare collection across the Green Line, Orange Line and Peoples Bus Service networks. The Red Line BRT project has been allocated Rs. 13.2 billion, while more than Rs. 3.5 billion has been set aside for the Yellow Line corridor.
In the social sector, Rs. 1 billion has been allocated for the Sindh Infectious Diseases Hospital in Karachi and Rs. 1.4 billion for a pediatric cardiac unit at the National Institute of Cardiovascular Diseases. 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.
Murad Ali Shah said the government remains focused on modern infrastructure, stronger public transport and improved water and sewerage services. He added that the Rs. 60.7 billion Shahrah-e-Bhutto Expressway has already started improving Karachi’s transport network by reducing travel times to nearly 25 minutes and serving around 25,000 vehicles daily.
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