Sindh Govt to Give Rs 10.56B Loan to Supply Water to DHA

The Sindh cabinet, chaired by Chief Minister Syed Murad Ali Shah, today approved an interest-free loan of Rs 10.56 billion to the Karachi Water and Sewerage Corporation (KW&SC). The funds will finance a dedicated water pipeline project extending 36 km from Dumlottee to the Defence Housing Authority (DHA), alongside a pumping station, forebay, and water filtration facility

• Loan Amount: Rs 10.56 billion (interest-free)

• Implementing Agency: Karachi Water & Sewerage Corporation (KW&SC)

• 36 km pipeline from Dumlottee to DHA Karachi

• New pumping station, forebay, and water filtration plant

Relief for DHA Residents

Addresses chronic water supply gaps in one of Karachi's most affluent zones

Alleviates Citywide Stress

Supplements to broader water infrastructure are strained by population growth

Speed and Volume

36 km of underground piping plus allied infrastructure in under a year

Interest‑Free Advantage

Budget-friendly support from the provincial government

• K‑IV Mega‑Project

• Designed to supply 650 MGD from Keenjhar Lake via a 120 km canal—yet severely delayed and over budget 

• Federal Support

• In January 2025, the federal government provided Rs 8 billion to fast-track the K‑IV feeder and Keenjhar enhancements 

• Provincial Role

• Sindh allocated Rs 10 billion in the 2024–25 budget for clean water programs

• Interest-Free Model: Enables full use of provincial budget without debt servicing

• Provincial Budget 2025–26: Total outlay Rs 3.45 trillion—12.9 % up from last year 

• Implementation Support: KW&SC to leverage administrative & financial support from the Sindh govt

• Cabinet Green‑Light: BCM approved pipeline and infrastructure funding 

• Technical Approval: The KW&SC board backed the project in February 2025

• Timeline: Full completion in 11 months, assisted by private contractors under public management

• Governance Goals: CM emphasized transparency, timely execution, and inter‑departmental coordination

Alongside the DHA water scheme, CM Shah’s cabinet approved:

• Flood aid uplift: From Rs 21.56 b to Rs 27.67 b for 151,147 flood‑affected farmers; Rs 6.1 b allocated, Rs 2.37 b via Benazir Hari Card 

• Agriculture subsidies: MoU signed between Sindh Bank and the agri‑department to roll out vital subsidies and relief programs

• Rail link for Thar coal: Rs 45 b allotted for a 105 km track plus coal terminal; Rs 7 b in PSDP 

• E‑Stamp reforms: Digitization of stamp duty in 51 land registrar offices to eliminate delays

These are part of Sindh's broader vision for inclusive growth and development

• Opposition Critiques

• Critics argue that prioritizing DHA may deepen Karachi’s district‑wide shortages

• Provincial Justification

• Proponents say DHA needs independent infrastructure due to high consumption and logistical demands

• Citywide Water Stress: Opposition says DHA grant doesn’t meet universal demand

• Inter-Provincial Disputes: Sindh-Punjab water sharing remains unresolved, requiring CCI intervention 

• Dependency on K‑IV: real relief depends on timely completion and full capacity

• Execution Risk: Coordination among contractors and agencies must be flawless to prevent delays

The Rs 10.56 billion interest‑free loan marks a focused provincial investment in Karachi’s infrastructure, aiming to finally address DHA’s water supply challenges. While critics warn of broader inequities, the project aligns with Sindh’s increasing budgetary commitment and water-sector reforms. Its success hinges on coordination, transparency, integration with federal efforts like K‑IV, and resolving Sindh’s wider water disputes. The next 11 months will determine whether this initiative becomes a model of equitable development or a targeted fix amid a wider citywide crisis.