Saturday, September 1, 2018

Can PTI Help Fix Pakistan's Financial Capital Karachi's Problems?

What are the biggest problems in Karachi's governance? What must the government do improve water, sanitation, transport and infrastructure issues faced by the megacity's population?

Should Karachi be a separate province? Should the local bodies law be changed to devolve power and allocate greater resources to the municipal governments in Sindh?

Water and Sanitation Spending in Karachi. Source: World Bank

What have other nations done to deliver better municipal services to their citizens? Can Pakistan learn from others' experience?  How can big cities like Karachi finance, build and manage the infrastructure needed to deliver better services?

What can the incoming PTI leadership in Islamabad do to help Karachi-ites in spite the limitations of the 18th Amendment?

Azad Labon Ke Sath host Faraz Darvesh discusses these questions with Sabahat Ashraf and Riaz Haq

Related Links:

Haq's Musings

South Asia Investor Review

Karachi's Safety Ranking Improves Amid Declining Crime Rates

Gangs of Karachi

Gangster Politicians of Karachi

Karachi is World's Fastest Growing Megacity

Karachi's Human Development Index

Pakistan Rising or Failing: Reality vs Perception

Pakistan's Trillion Dollar Economy Among top 25


Riaz Haq Youtube Channel

VPOS Youtube Channel


Riaz Haq said...

Transforming Karachi into a Livable
and Competitive Megacity
A City Diagnostic and Transformation Strategy

Over the past 10 years, capital expenditures in the water and sanitation sector
totaled over US$65 million. The vast majority of this investment was undertaken
with the support of the provincial and federal governments. The amount of
investment has been decreasing since 2008 (figure 3.6). The investment level is
insufficient to close the current gap in terms of access and quality and to keeping
pace with growing demand and service targets.
Additionally, the actual investment amount is far from the estimated investment
requirements for water supply to ensure universal access to safe and affordable
drinking water by 2030, one of the Sustainable Development Goals. In
2007, the JICA WSS Master Plan for Karachi estimated the total investment
needs for both WSS at US$2.6 billion (2008–25).
Karachi’s water and sewerage crisis is foremost a governance and institutional
one. Without a viable governance framework that clearly delineates the appropriate
roles and responsibilities of relevant stakeholders in policy making, service
delivery, and regulation, the long-term effects of technical, financial, or internal


Water supply in Karachi is highly irregular and inequitable. Data show that
access to improved water sources has declined in the past 10 years in Karachi,
slipping from 90 percent coverage of the population in 2006–07 to 86 percent
in 2014–15 (figure 3.3). Further, rationing of water supply is widespread in
most places, particularly in poor neighborhoods. More than 50 percent of
Karachi’s population lives in informal settlements, and most of them face
severe shortages of water and a lack of proper sewerage systems (ADB 2007).
Water availability often ranges from two hours every two days to four hours
per day at very low pressure. Due to the lack of alternatives—as groundwater
is brackish and KWSB is the only service provider—many households also rely

Riaz Haq said...

Sindh govt join hands with World Bank on various projects worth $10bn

Chief Minister Murad Ali Shah said that his government’s policy is very clear. He is working for transforming governance economic growth, sustainable development and human capital development. “I am committed to achieving these goals through accountability to the core of government, encouragement of economic growth, liberalisation of the agriculture sector and through strengthening population management and early childhood development,” he said.

Several projects including Karachi Neighbourhood Improvement project worth $86 million, in which the provincial government has to put in $14 million to start the project, Karachi Urban Management (KUM), a $200 million project, Karachi Urban Mobility project worth $400 million, Karachi Water and Sewerage project worth $640 million also came under discussion. These three projects had needed some provincial government approvals and to finalise investment plan to start the project.


The World Bank has proposed $200 million for Karachi Urban Management Project. The chief minister said that the objective of the project is to enhance urban management service delivery of Karachi Metropolitan Corporation and other districts metropolitan corporation (DMCs).

The proposal is to provide performance-linked block grants to six DMCs and KMC for local level infrastructure and municipal services. A capital development grant was proposed for KMC for flood management and rehabilitation of urban drainage infrastructure.

The chief minister directed P&D Chairman Mohammad Waseem to call a joint meeting of local bodies and secretary local government to finalise the KUM Project so that necessary recommendation could be firm up for final approval.


The World Bank proposed $400 million for Karachi Urban Mobility. The project is aimed at improving urban mobility, accessibility and road safety in Karachi. Under the project, the WB would construct Yellow Line corridor, including the development of infrastructure rehabilitation and BRTs construction system.

The chief minister approved the project and directed P&D chairman and Transport secretary to move forward with the project by completing all the required formalities and also sends the concept paper to Economic Affairs Division.


The goal of Sindh Water & Agriculture Transformation & Climate Resilience project is transforming water management and agriculture production towards higher levels of water productivity and improve climate resilience. The WB has proposed $300 million and the provincial government share would be $150 million.

Sindh Chief Minister Murad Ali Shah said that under project rehabilitation of canal system on the right of Dadu and Rice Canal and on the left bank of Akram wah, Ghotki Feeder and the Fulleli system would be made. He also added that under the project advance irrigation reforms have been proposed and masterplans for the monitoring system of right bank barrages would also be evolved.


Transformation and Revitalisation of the Fisheries Sectors (TRFS) will cost about Rs150 million. The chief minister said that the goal of the project was to transform and revitalize fisheries and aquaculture by improving management, competitiveness and community.

The project would introduce sustainable management systems, including spatial planning, vessel registration and licensing and data management. The chief minister said that under the project private sector participation would be incentivized and would build value chains. He added that the project also aims at improving nutritional food security and livelihoods for women and families and strengthening institutions.

Riaz Haq said...

Can a revival in #Karachi spark change in #Pakistan? #Violence is declining sharply, but poor basic services plague businesses. #water #sanitation #Transport

Riaz Haq said...

#Karachi revitalization drive to remake #Pakistan. NED University study found that traffic congestion costs Karachi $2 billion a year. Data from municipal corporation showed more than 3 million #motorcycles currently in use with 25,000 added each month.

The modernization of Karachi’s old downtown is one of a string of projects aimed at revitalizing Pakistan’s largest city and economic powerhouse, which has long been plagued by traffic congestion, water and electricity shortages and rampant crime.

But experts say the politicking by local parties and wrangling between different levels of government that have stalled Karachi’s growth for decades continue to hold back development.

Public transit programs, including a shiny new bus service and the revival of a long-closed inner city rail service, are among the projects stuck in the gridlock.

Both transport schemes have been held up awaiting authorization from Islamabad to invite bids to supply new buses and begin laying railways tracks, according to Sindh province’s Transport Minister Awais Qadir Shah.

Muhammad Sualeh Faruqui, CEO of the federal development corporation in charge of the bus project that is expected to move 250,000 commuters daily, said an agreement between the provincial and federal government should be finalised soon.

But no movement has been made on the bus or rail projects since Reuters spoke to Faruqui in January.

On Saturday, Prime Minister Imran Khan announced the allocation of 162 billion rupees ($1.15 billion) for Karachi’s development, to be primarily spent on transport and sewage projects.

“We need to make a master plan for Karachi and define the limits of the city and whether it will expand beyond its current area,” Khan said.

In the 1960s, Karachi boasted the tallest building in South Asia, an operational inner-city rail service, vibrant nightlife, and booming tourism.

But more than 50 years later, the city’s infrastructure has failed to keep pace with a population that has sky-rocketed more than 300 percent, leaving many public services such as health, transport, and water either provided by an informal private sector or controlled by organized crime.

The city nevertheless remains key to Pakistan’s shaky economy, now on the verge of its 13th IMF bailout since the late 1980s, accounting for 20 percent of the country’s gross domestic product (GDP), according to World Bank figures.

“Improving Karachi’s efficiency and Karachi’s economy, improves Pakistan efficiency and Pakistan’s economy,” said former finance minister and Karachi resident Mifath Ismail. “It is the only port city in Pakistan and it’s the hub of all international trade.”

A study by the NED University of Engineering and Technology found that traffic congestion costs Karachi $2 billion annually. Data from the local municipal corporation showed more than 3 million motorcycles currently in use with 25,000 added each month.

Riaz Haq said...

#Pakistan #ImranKhanPrimeMinister commits $1 billion investment in #Karachi port to boost #trade. Karachi is Pakistan's major maritime link to the outside world and handles over 60 percent of the country's imports and almost all of its #exports. @AJENews

Pakistani Prime Minister Imran Khan has unveiled a billion-dollar investment programme to improve infrastructure in the country's most important port city, Karachi.

Karachi is an economic hub and handles more than half of Pakistan's imported goods.