The Sindh government has allocated more than Rs108 billion for development projects in Karachi in the FY2026-27 budget, with a major focus on transport, water supply, drainage, sanitation, education and public infrastructure, Chief Minister Syed Murad Ali Shah said.
Presenting details of the development programme for the provincial capital, the chief minister said the government was paying special attention to Karachi's mega development projects to improve civic facilities and support the city's growing population.
Karachi development programme FY2026-27
816
Total development projects
Rs644.3bn
Total estimated cost
Rs100.19bn
FY2026-27 allocation
822
Schemes funded
167
Projects above Rs500m
110
Mega projects above Rs1bn
He said a total of 816 development projects were included for Karachi with an estimated cost of Rs644.3 billion. Of these, 167 major projects costing more than Rs500 million each are under implementation, while 110 mega projects valued at more than Rs1 billion each are part of the development portfolio.
According to Murad Ali Shah, a total of 822 schemes have been allocated Rs108.1 billion, while Rs100.19 billion has been earmarked for Karachi during the 2026-27 financial year.
Focus on roads and traffic infrastructure
The chief minister said several major road and traffic management projects had been included in the budget to ease congestion across the city.
These include a new flyover from Star Gate on Airport Road at a cost of Rs1.2 billion and a right-turn underpass from Malir Halt to Shahrah-e-Faisal costing Rs1.5 billion.
He said Rs1.65 billion had been allocated for the Sir Shah Suleman Road crossing flyover at Gujjar Nala, while Rs159 million had been set aside for the Bhutto Highway and Korangi Causeway Junction project.
An allocation of Rs105 million has also been made for the Azimpura Intersection Flyover and Shah Faisal Road project.
Major transport projects in Karachi
| Project | Allocation |
|---|---|
| Star Gate Flyover | Rs1.2bn |
| Malir Halt–Shahrah-e-Faisal Underpass | Rs1.5bn |
| Sir Shah Suleman Road Flyover | Rs1.65bn |
| Bhutto Highway–Korangi Causeway Junction | Rs159m |
| Azimpura Flyover & Shah Faisal Road | Rs105m |
| Bhutto Expressway Link Road | Rs703.8m |
| Red Line BRT | Rs13.2bn |
| Yellow Line BRT | Rs3.5bn+ |
The chief minister said a new interchange would be constructed at the junction of the M-9 Motorway and Abul Hasan Isphahani Road, while projects linked to the Malir Expressway, including new interchanges and connecting roads, had also been included in the budget.
Two new underpasses will be built on Khayaban-e-Ittehad and Khayaban-e-Shahbaz, while additional projects aimed at improving traffic flow on Shahrah-e-Faisal, Malir Halt and Star Gate are also planned.
A new project for the construction of alternative traffic routes in Clifton has been incorporated into the development programme.
Water, drainage and sanitation projects
Murad Ali Shah said the government had launched several projects to improve Karachi's drainage and water infrastructure.
A total of Rs1 billion has been allocated for the third phase of construction and rehabilitation of major storm drains, while Rs1.1 billion has been earmarked for the rehabilitation of Gujjar Nala and construction of service roads.
Another Rs280 million has been allocated for a stormwater drain project from M-9 to Thaddu Nala.
Water, sanitation and health allocations
Rs1bn
Storm drains rehabilitation (Phase III)
Rs1.1bn
Gujjar Nala rehabilitation
Rs575.2m
K-4 linked water supply expansion
Rs1bn
Water pumping stations upgrade
Rs9bn+
Solid Waste Emergency Programme
Rs166m
Six garbage transfer stations
Rs1bn
Sindh Infectious Diseases Hospital
Rs1.4bn
NICVD Pediatric Cardiology Unit
The chief minister said funds had been allocated for the Karachi Water and Sewerage Services Improvement Project (KWSSIP) Phase-II, while Rs1 billion had been set aside to continue work on the Greater Karachi Sewerage Plan S-III.
Funding would also be released for the K-4 Water Supply Project and related schemes.
He said Rs575.2 million had been allocated for the expansion of the water supply system linked to the K-4 project, while Rs1 billion would be spent on upgrading water pumping stations in Karachi's East and Central districts.
A major project to rehabilitate Karachi's trunk water mains and reduce leakages has also been launched. In addition, Rs127 million has been allocated for a new water supply line along the Lyari Expressway.
Solid waste management
The chief minister said more than Rs9 billion had been allocated for the Solid Waste Emergency and Efficiency Programme.
He said Rs166 million had been earmarked for six modern garbage transfer stations across Karachi, while Rs118 million would be spent on upgrading the Jam Chakro and Gond Pass landfill sites.
Work on modern waste management facilities and garbage transfer stations is already underway, he added.
Public transport and Safe City projects
Murad Ali Shah said Rs13.2 billion had been allocated for the Karachi Red Line Bus Rapid Transit (BRT) project, while more than Rs3.5 billion had been earmarked for the Yellow Line BRT corridor.
He said funding had also been allocated for Phase-I and Phase-II of the Karachi Safe City Project.
The chief minister added that work on establishing a modern forensic laboratory and forensic science agency in Karachi would be accelerated.
Health and education initiatives
The Sindh government has allocated Rs1 billion for the Sindh Infectious Diseases Hospital Karachi during the current fiscal year.
Murad Ali Shah said Rs1.4 billion had been earmarked for the Pediatric Cardiology Unit at the National Institute of Cardiovascular Diseases (NICVD), Karachi.
Development funds would also be released for the establishment of a new medical college in Karachi.
He said the Bilawal Bhutto Engineering College project in Lyari would cost more than Rs1.84 billion, while Rs200 million had been allocated for Shaheed Zulfikar Ali Bhutto Law University Karachi.
Funding has also been earmarked for the Karachi Education Complex project, Karachi University, Jinnah Sindh Medical University and other educational institutions.
Governance, markets and civic facilities
The chief minister said a new Sindh Revenue Board training academy and office complex would be established, while Rs1 billion had been allocated for a Provincial Civil Services Academy in Karachi.
Another Rs262.5 million has been allocated for the improvement of business centres and markets.
Murad Ali Shah said development funds had also been earmarked for sports complexes, stadiums and youth facilities across the city.
Additional development schemes
The chief minister said Rs4.37 billion had been allocated under the Lyari Transformation Package, while funding had also been released for the rehabilitation and resettlement of families affected by the Gujjar, Mehmoodabad and Orangi nullah projects.
He said several road rehabilitation projects were underway in Baldia, Korangi, Malir, Central, East and West districts, while new street lighting and infrastructure upgradation schemes would also be launched.
A plantation programme along the Bhutto Highway and Malir Expressway has also been included in the development agenda.
"Transport, water supply and drainage projects remain our top priorities for Karachi," Murad Ali Shah said, adding that the development programme aims to improve urban services, mobility and the overall quality of life for residents of the country's largest city.