Cabinet approves Rs8.82b for water schemes

Gives go ahead to Rs11.19b Karachi infrastructure projects

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KARACHI:

The Sindh Cabinet, chaired by Chief Minister Syed Murad Ali Shah, approved a series of major decisions relating to finance, infrastructure, energy, health, security and education. Key approvals included additional funding of Rs8.824 billion for water supply and drainage development schemes across the province and Rs11.198 billion for major infrastructure projects in Karachi.

Additional funding

On the recommendation of the cabinet committee on finance, presented by Local Government Minister Syed Nasir Hussain Shah, the cabinet approved an additional Rs8.824 billion for 16 Annual Development Programme (ADP) schemes in the water supply and drainage sector for 2025-26 fiscal. Of the approved amount, Rs6.206 billion will be provided through ADP block allocations, while Rs2.618 billion will come from other development allocations.

Mega projects

In another significant decision, the cabinet approved 11 non-ADP infrastructure schemes under the Karachi Mega Project, to be financed through the 'New Development Initiatives' fund of ADP 2025-26. The projects carry a total estimated cost of Rs11.198 billion.

The approved schemes include the rehabilitation and improvement of major roads and transport corridors.

The cabinet also approved the construction of two major flyovers at Power House Chowrangi in North Karachi and 4-K Chowrangi in Surjani Town and released Rs560 million, five per cent of the total estimated project cost.

Additionally, the cabinet approved a non-ADP scheme worth Rs485 million titled 'Restoration and Development of Darbar Lal Shahbaz Qalandar, Lal Bagh and Civic Centre Sehwan'. An amount of Rs24.25 million, equivalent to five percent of the project cost, has been allocated.

Natural gas royalty

The cabinet approved a new framework allowing Sindh to receive part of its constitutional entitlement of 12.5 per cent natural gas royalty in the form of gas rather than entirely in cash.

Payment of IHS dues

The cabinet approved the release of Rs395.019 million to Integrated Health Services (IHS) to clear outstanding liabilities related to the management of 111 outsourced healthcare facilities, including 105 Rural Health Centres (RHCs) and six Taluka Headquarters (THQ) hospitals. The liabilities accumulated between March 2016 and October 2021 under a public-private partnership arrangement.