Centre revives Rs20b uplift projects in Karachi, Hyderabad

PIDCL to restart 193 cancelled schemes; pledges end to commissions, kickbacks, political interference


Naeem Khanzada August 03, 2025 2 min read

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KARACHI:

The federal government has decided to restart stalled development projects in Karachi and Hyderabad using federal funds, with a firm commitment to transparency and merit-based tendering. The move aims to eliminate interference from corrupt networks and parallel administrative systems that have historically undermined infrastructure development.

The Pakistan Infrastructure Development Company Limited (PIDCL) has announced the revival of 193 development schemes, previously cancelled due to irregularities and lack of competition. These projects, worth billions of rupees, were originally approved for constituencies represented by MNAs of the Muttahida Qaumi Movement-Pakistan (MQM-P).

PIDCL has finalised two major funding packages - Rs15 billion for Karachi and Rs five billion for Hyderabad — under which infrastructure development will be carried out in line with strict merit-based procedures. According to the new guidelines, tenders will be awarded without the customary commission cuts, kickbacks, or political interference.

"Contracts will no longer be sold, and all payments will be made transparently. Projects will be completed on time and according to the approved standards," said PIDCL General Manager Shafi Chachar.

He added that contractors who quote rates more than 10% below the lowest bidder may be required to complete the work at their own expense to prevent manipulation through unsustainable bidding. All awarded contracts must be backed by valid bank guarantees, and no project will proceed without meeting these financial safeguards.

To further strengthen transparency, PIDCL will implement an e-procurement system, which is expected to reduce favouritism and ensure that tenders are awarded purely on merit. Independent consultants will be appointed to monitor project execution and adherence to quality standards.

Out of 410 development schemes initially proposed by MQM-P MNAs, 193 were previously cancelled due to the presence of single bidders or unhealthy competition. PIDCL plans to reissue tenders for these schemes in the coming days.

In response to concerns over billing fraud, Chachar said PIDCL will coordinate with relevant departments at the initiation and completion stages of each project. Signboards displaying project details will also be installed at construction sites to ensure public visibility and accountability.

"The federal government has released the required funds, and development work has already begun under the supervision of PIDCL. Citizens of Karachi and Hyderabad will start seeing tangible improvements once the schemes are completed," he added.

The move to conduct "system-free" development - without political brokerage or corrupt intermediaries - marks a crucial shift in the approach toward urban infrastructure in Sindh's two largest cities. PIDCL officials expressed hope that the initiative would restore public confidence in development programmes and bring long-overdue relief to residents.

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