Karachi’s K-IV water project receives ‘Inadequate’ share in Budget 2026-27

The government of Pakistan has allocated Rs. 103.1 billion for water sector projects in the federal budget 2026-27, while critical water supply projects remain underfunded despite growing nationwide scarcity.

Among the major allocations, the government reserved Rs. 10 billion for Karachi’s crucial K-IV water supply project, though the amount falls short for a metropolitan city of over 25 million people currently grappling with a severe water crisis.

It is to be mentioned that the K-IV water projects have a revised estimated cost of Rs 170 billion. The long-delayed project is designed to supply 260 million gallons per day (MGD) of water to Karachi.

Other key allocations within the water sector include Rs. 14 billion for the Diamer Basha Dam, Rs. 22 billion for the Dasu Dam, and Rs. 15 billion for the Dasu Hydropower Project as part of the Budget 2026-27.

In comparison, social safety nets and housing initiatives received substantially higher funding in Budget 2026-27, with Rs. 909 billion collectively allocated for major government schemes, including the Prime Minister’s “Apna Ghar Program” low-cost housing finance initiative and the Benazir Income Support Program (BISP).

Additionally, the federal government allocated Rs. 6.6 billion for the trade and industry sector, a move officials justified as a necessary step toward making domestic industries self-sustainable.