Sindh Budget 2025-26: Rs8.2 Billion Allocated for Karachi’s Ongoing Mega Projects, No New Schemes Announced
KARACHI – In the newly announced Sindh Budget 2025-26, the provincial government has earmarked Rs8.288 billion for nine ongoing mega development schemes in Karachi. However, for the third consecutive year, no new mega infrastructure projects have been introduced for the country’s largest city under the Annual Development Programme (ADP).
Budget Highlights for Karachi:
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Rs8.288 billion allocated for ongoing mega projects
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Rs1.89 billion for Shahrah-e-Bhutto & Korangi Causeway junction
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Rs1.5 billion for Malir River bridge (N-5 Murghikhana)
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Rs1.3 billion for Korangi Causeway Bridge
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Rs922 million for Nehr-e-Khayam rehabilitation
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Rs847 million for storm-water drain (M-9 to Thaddo Nalla)
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Rs666 million for a new sports complex at Bakhtiari Youth Centre
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Rs508 million for Manzoor Colony drain upgrade
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Rs450 million for main roads in Sachal Goth
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Rs158 million for construction of Allama Iqbal Park (Federal B Area)
Key Projects Receive Minimal Funding
Despite being high-priority and long-awaited, key initiatives like the Karachi Circular Railway (KCR), K-IV water supply project, and S-III sewerage plan were notably absent from the budget speech delivered by Chief Minister Murad Ali Shah, who also serves as finance minister.
However, the budget documents reveal:
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Rs450 million allocated for S-III (Greater Karachi Sewerage Project)
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Only Rs100 million allocated for K-IV Phase-I (260 MGD) water supply scheme
Urban Development & Transport Initiatives
CM Shah announced a Rs12 billion allocation under the Karachi Urban Infrastructure Development initiative, although specific project details remain undisclosed.
To address Karachi’s persistent water shortage, the CM shared plans for a five million gallons per day seawater desalination plant, expected to launch investor solicitation by 2025.
500 New Electric Buses for Karachi
The Sindh government will add 500 electric buses to Karachi’s public transport under a phased plan, as part of the broader goal to deploy 1,000 electric buses across the province.
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100 new 12-meter electric buses have already been ordered under a rent-to-own model, expected to become operational by July 2025.
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Progress continues on the Bus Rapid Transit (BRT) system:
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Yellow Line nearing completion
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Red Line at 50% completion
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KMC and Local Government Support
In FY 2024-25, the Sindh government provided Rs148 billion in grants to local councils, including Rs26 billion to the Karachi Metropolitan Corporation (KMC) to support operations and development projects.