Karachi gets Rs50bn in ‘urban-focused’ budget

Published June 14, 2015
Provincial govt has given Karachi what it termed an “impressive 49 per cent increase” for funding development schemes. -Aliraza Khatri/Dawn
Provincial govt has given Karachi what it termed an “impressive 49 per cent increase” for funding development schemes. -Aliraza Khatri/Dawn

KARACHI: Reviewing the insufficient budgetary allocations in the outgoing fiscal year for the megacity of Karachi, the provincial government has given it, what it termed, an “impressive 49 per cent increase” for funding development schemes over the year ahead.

The increase for the city’s development projects, officials said, is made in a manner that it is compatible to the demands of the large population it hosts and the robust contribution it makes to the resource generation.

“It seems the government has finally realised that the city’s needs should be viewed compassionately instead of letting political biases decide the resource dispersal,” said a senior official.

The division-wise development expenditure as given in the budget documents shows that Rs49.73 billion has been allocated for Karachi, 49pc heavier than “Rs33.425bn allocation” in 2014-15. However, the actual budgetary allocation for Karachi was Rs42bn in FY15, which means the size of next year’s ADP is 18pc higher than current year, and not 49pc.

“The government of Sindh has planned mega projects for Karachi in transport sector, water supply and sewerage and waste management,” said the document issued by the provincial finance department.

Karachi, officials said, got the highest increase in its share followed by Hyderabad. All the other divisions have got minimal raises, save Mirpurkhas which, in fact, saw a decrease of Rs2bn than what it was given in the last budget.

Similarly, Rs37.56bn (including district ADP) has been allocated for Hyderabad division, while Rs27.346 has been proposed for Sukkur division to execute ongoing and new development schemes.

Larkana division, the native region of the Bhuttos of the ruling Pakistan Peoples Party (PPP), has been given Rs33.586bn for its ongoing and new schemes. A sum of Rs34.584bn would be kept for similar schemes of Mirpurkhas division where Tharparkar district would be the government’s priority due to its backwardness, poverty and availability of coal reserves.

Out of total outlay of the annual development programme (ADP), Rs20.577bn has been allocated for 91 schemes of Thar.

In contrast to the previous huge allocations, the Benazirabad division got Rs18.015bn, a comparatively small allocation.

Mega projects for Karachi

The mega projects envisaged for Karachi include the long-delayed Mass Transit Project, with the Circular Railway, five Bus Rapid Transit and two Metro Rail Transit. The government claims that five BRT projects would be completed in the next fiscal year, which included the Yellow Line that would pass through Orangi Industrial Area and terminate at Saddar (Regal).

The Orange Line Project connects District West to BRT Green Line at Board Office Chowrangi. The Green Line Project passes through the heart of the city and starts at Municipal Park (Aurangzeb Park) and culminates at KESC Powerhouse. The Red Line Project will operate in Gulshan-i-Iqbal.

The Blue Line Project starts at Bahria Town and has two terminating points. One ends at the Airport and the other at Merewether Tower. The Rs13bn BRT Yellow Line project, documents say, is under implementation.

The concession agreement of the project will be signed this month and financial close is expected to be achieved in three months. The physical work on the project would be started by October next year. The estimated completion time is 18 months.

The BRT Orange line Project is being implemented under ADP at a cost of Rs2.364bn. It is 4.7km long and will facilitate 50,000 daily commuters. The entire allocation for the project has been kept in next year’s ADP and is expected to commence in August 2016.

The BRT Green Line Project will cost Rs16bn and will be funded by the federal government. It is a 21km long corridor and will facilitate over 400,000 commuters daily. Project execution is expected from July 2015. The Federal Government has promised to complete this project in one year.

Another delayed project, the Revival of Karachi Circular Railways (KCR), will be among the mega transport project in the city. With the assistance of Japan International Cooperation Agency (JICA), KCR will have a dual track of 43.3km, with 24 stations at an average distance of 1.5 km.

The estimated cost of the project is $2.6bn. JICA’s appraisal mission is expected during 2015-16 for negotiations and signing of loan agreement. The provincial government is also talking to the Chinese authorities to assist in the project in case the JICA funding does not materialise.

Other projects

Other major projects for the city include Karachi Sewerage Project S-III costing Rs7.982bn, Greater Karachi Bulk Water Supply Scheme K-IV costing Rs25.522bn, conversion of selected existing schools into model schools (primary, secondary and higher secondary of CDGK) at the cost of Rs1.52bn, establishment of Shaheed Zulfikar Ali Bhutto University of Law, Shaheed Benazir Bhutto Accident Emergency and Ancillary Services Complex at Civil Hospital, construction of 400-bedded hospital at NIPA Chowrangi (Gulshan-i-Iqbal), establishment of Children Hospital at SIUT, establishment of Shaheed Benazir Bhutto Medical Complex at National High way, near Razzaqabad, Bin Qasim Town, and construction of Nusrat Bhutto Underpass at Mehran Hotel.

Several projects have been announced for Hyderabad division, which consists of districts Tando Allahyar, Tando Muhammad Khan, Thatta, Sujawal, Matiari, Dadu, Jamshoro and Hyderabad.

Similarly, development schemes of varying significance as per demands of the particular regions have been designed for Sukkur division, comprising districts Sukkur, Ghotki and Khairpur, Larkana division consists of districts Larkana, Qambar-Shahdadkot, Jacobabad, Shikarpur and Kashmore, Mirpurkhas division consists of Mirpurkhas, Badin, Umerkot and Tharparkar districts and Benazirabad division with districts Shaheed Benazirabad, Sanghar and Naushehroferoze.

Published in Dawn, June 14th, 2015

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