World Bank approves $652 million for Karachi projects

The World Bank announced that it was committing $652 million through three projects to strengthen institutions, municipal services and infrastructure in Karachi.

The projects will focus on urban management, public transport, and safe water and sanitation to enhance Karachi’s livability and competitiveness.

This builds on findings of the Karachi Transformative Strategy, which estimates infrastructure needs of $9-10 billion for the city. The three projects and the ongoing Karachi Neighborhood Improvement Project will help reduce this resource gap and help the city meet the needs of its women and men.

Pakistan@100: Shaping the Future outlines a pathway for Pakistan to become a prosperous country by 2047. Karachi is central to achieving this as the engine of economic growth, given its contribution to the national economy.

“We are committed to supporting the transformation of Karachi into a livable and competitive megacity,” said Illango Patchamuthu, World Bank Country Director for Pakistan. “Investments to improve institutions, services and infrastructure will further enhance the city’s contribution to the country’s economy and people’s well-being.”

The Competitive and Livable City of Karachi Project ($230 million) will improve urban management, service delivery and the business environment. It will help improve performance and service delivery by local councils through performance-based grants for urban management and infrastructure. The project will modernize the urban property tax system, incentivize private sector participation in service delivery, enhance ease of doing business, and improve solid waste management.

The Karachi Mobility Project ($382 million) will improve access to jobs, mobility, and safety through a Bus Rapid Transit system along the 21-km Yellow Corridor. A key focus area of the project is to provide safe and secure transport for women’s mobility. The corridor starts at Dawood Chowrangi in the east, runs through the Korangi industrial area, and ends in Numaish at the city center. It is one of five priority lines in the city’s transport plan and will benefit commuters along Surjani town and Korangi industrial area. The project will reduce travel time, road traffic fatalities, and reduce emissions.

The Karachi Water and Sewerage Services Improvement Project ($40 million) is part of larger and longer-term $1.6 billion program. This first phase will support an ambitious reform program aiming to improve the Karachi Water and Sewerage Board’s efficiency and sustainability to provide clean drinking water and sanitation services to the citizens of Karachi. Two million people will benefit from better customer service, reduced water losses, and improvements in asset and revenue management. Water supply and sewage networks will also be rehabilitated through investments in at least three informal settlements (Katchi Abadis), pumping stations, and sewer maintenance trucks.