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Press Release

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The Federal Government has committed to the following projects, under the Karachi Transformation Plan announced by the Prime Minister.

Dated : 7 September 2020

The Federal Government has committed to the following projects, under the Karachi Transformation Plan announced by the Prime Minister;

S.No. Projects Additional funding required
1 Greater Karachi Water Supply Project (K-IV) Rs.46 billion
2 Karachi Circular Railway (KCR) Rs.300 billion
3 Railway Freight Corridor Rs.131 billion
4 Green line BRT Rs.5 billion
5 Rehabilitation of River, Nullahs & Storm Water Drains and resettlement of affected people Rs.254 billion

The total cost of these projects is estimated at Rs.736 billion. Of these the Government plans to request the Supreme Court of Pakistan to allow use of part of the Bahria Town Settlement Fund (upto Rs.125 billion) expected to be available during the three years period of KTP. Hence the funding estimated to be arranged by the Federal Government is Rs.611 billion. The balance Rs.375 billion (out of the total package of more than Rs.1100 billion) is shown as Provincial Government responsibility.

During the meetings held for finalization of KTP, the Provincial Government expressed the desire to take responsibility for the KCR project. However, Railways is a Federal subject, as per Part-II of Schedule-IV of the Constitution of Pakistan. Equally importantly the Supreme Court of Pakistan has also conducted hearings with regard to KCR and directed that the Federal Government / Railways undertake the project. The Federal Government is therefore, duty bound to implement this project. As such, the execution responsibility and the financial burden of the same which is estimated at Rs.300 billion has been included in the Federal Government responsibility under the Karachi package.

It is, however, once again reiterated, that the Federal Government is looking at working in collaboration with the Provincial Government for the development of Karachi. The real objective is to help the citizens of Karachi and not an effort to score political points. The details of the Federal & Provincial responsibilities & funding are only being issued to remove ambiguities which have arisen in the last couple of days.