Karachi K-IV Water Project Budget Escalates to Rs172bn
CDWP Sanctions Revised Rs172 Billion Allocation for Karachi Water Project
K-IV WATER COST SOARS
Illustration concept: A sprawling modern industrial water pipeline system being built under sunlight near a large urban city, dramatic wide angle photograph
AI summary
Pakistan's Central Development Working Party has approved a revised Rs172 billion budget for Karachi's long-delayed K-IV water supply scheme. Despite an enormous cost surge over time, the project's capacity in this phase has been reduced to 260 million gallons per day.
Key takeaways
- The CDWP approved a revised budget of Rs172 billion for Karachi's K-IV water project.
- Targeted delivery capacity has been scaled down from 650 MGD to 260 MGD.
- Completion of the current phase is now slated for June next year following extensive delays.
- A total of seven development projects worth Rs253 billion were cleared or referred by the CDWP.
The Central Development Working Party has greenlit a major budget revision for Karachi's bulk water supply initiative, pushing its total price tag to Rs172 billion. Initially conceived as a critical long-term fix for the metropolis's chronic water scarcity, the K-IV project has experienced a nearly tenfold cost expansion alongside delays stretching over 13 years.
At a session led by Planning Minister Ahsan Iqbal, officials sanctioned seven public sector development proposals with a combined outlay of Rs253 billion. The K-IV scheme anchored the meeting due to its substantial financial adjustments. Expenses for the current phase have surged by 75 percent since contracts were finalized in mid-2022 at an earlier estimate of Rs98.5 billion.
In addition to rising expenditures, the operational scale of the project has been trimmed significantly. Rather than delivering the originally intended volume of 650 million gallons daily, the revised framework will provide only 260 million gallons per day. Work under the current contracts was initially set for completion in late 2023, but target completion has now slipped to June next year.
The planning body also directed a proposal for establishing a national space center to the Executive Committee of the National Economic Council for ultimate clearance. Six remaining development initiatives, valued together at Rs81 billion, were approved during the same proceedings.
Frequently asked questions
- What is the new total cost for the K-IV water project?
- The revised estimate for the K-IV scheme stands at Rs172 billion, representing a nearly 1,000 percent increase from its original planning figure.
- How much water will the updated K-IV phase deliver?
- The active phase of the scheme is set to deliver 260 million gallons of water per day, down from the initially planned 650 MGD capacity.
- When is the K-IV project now expected to be finished?
- Authorities are currently aiming to complete the ongoing phase of the water supply project by June next year.
Source & transparency
- By:
- Tony
- Source:
- Dawn Business
- The Reviser publication:
- Aug 7, 2026, 3:26 AM
- Updated:
- Aug 8, 2026, 8:19 AM
This report was independently written by The Reviser editorial desk from verified source material. It is not original on-the-ground reporting by The Reviser.
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