Budget 2026–27: Centre allocates funds for Karachi infrastructure

The Federal Government has allocated substantial funding for key infrastructure, transport and industrial development projects in Karachi and other parts of the country under the Federal Budget 2026–27.

Presenting the budget in the National Assembly, Finance Minister Muhammad Aurangzeb announced that PKR 10 billion has been allocated for Karachi’s K-IV Water Supply Project, a critical initiative aimed at addressing the city’s long-standing water shortages.

The Minister further stated that PKR 6.6 billion has been earmarked for the industry and commerce sector, with the largest share of the allocation designated for Block A of the Karachi Industrial Park.

As part of the Government’s transport infrastructure agenda, PKR 100 billion has been allocated for the dualisation of the Karachi–Chaman Expressway, one of Balochistan’s key transport corridors.

In addition, an investment of PKR 30 billion has been proposed for the Sukkur–Hyderabad Motorway (M-6), contributing to the completion of Pakistan’s north–south motorway network.

The Finance Minister also announced that work on the Karachi–Rohri section of the Main Line-1 (ML-1) railway project will proceed with financing support from the Asian Development Bank (ADB), for which PKR 25 billion has been allocated.

Furthermore, PKR 2 billion has been set aside in the development budget for the Thar Coal Connectivity Railway Project, aimed at improving logistics and connectivity for the energy sector.

In support of national transport and maritime infrastructure, the Government has allocated PKR 93 billion for the development of Gwadar Port infrastructure and transport projects across all four provinces.

These allocations reflect the Government’s commitment to strengthening water supply systems, transport connectivity, industrial growth and regional economic development across Pakistan.