City to get Rs37b foreign funding for development

Centre plans to double development spending for metropolis

KARACHI:

The federal budget for 2022-23 has allocated an amount of Rs37 billion to be spent on various development projects in Karachi under the funding by international financial institutions and friendly countries.

While during the financial year 2021-22, around Rs16.61 billion was spent on development projects in Karachi with the support of international financial and development institutions and friendly countries.

In this regard, the federal government's budget would almost double the amount spent on development projects in Karachi with the support of international organisations and friendly countries.

According to federal budget documents, Rs90 million has been allocated for setting up an IT park in Karachi with the help of Republic of Korea. The Karachi Neighbourhood Improvement Project will cost Rs6.46 billion from World Bank's International Development Association Funds.

The funds allocated for the next financial year is almost double of the amount spent in the last two financial years.

With the support of the World Bank, Rs1.75 billion will be spent to improve the performance of Karachi Water and Sewerage Board.

The World Bank will spend Rs5 billion in next financial year with the support of International Bank for Reconstruction and Development (IBRD) in the Karachi Mobility Project to facilitate mobility in Karachi. Under this project, Rs4.64 billion was allocated in the budget for the financial year 2021-22.

A fund of Rs11.65 billion has been allocated in the budget 2022-23 which European Bank for Reconstruction and Development (EBRD) will provide for Competitive and Livable City of Karachi (CLICK), while out of funds amounting to Rs9 billion, Rs212.6 million was spent on this project in the last financial year.

The Asian Development Bank will provide Rs4.92 billion in the next financial year for the Karachi Sustainable Bus Rapid Transit project of public transport project in Karachi. Rs9.74 billion was allocated for this project in the financial year 2021-22 but only Rs2 billion was spent out of the total allocated amount.

During the next financial year, France will provide Rs3.62 billion for Karachi Bus Rapid Transit project. For this project, Rs3.10 billion was to be received from France but only Rs597 million could be spent.

Moreover, during the next financial year, with the support of Asian Infrastructure Development Bank, Rs21.7 million will be spent on improving the performance of Karachi Water Board, while an amount of Rs3.55 billion will be spent on AIID for Karachi Red Line Bus Rapid Transit project.

 

Published in The Express Tribune, June 13^th, 2022.