Karachi Division Real Estate News and Land Insights

Karachi | ReNews Pakistan
The Sindh government has announced a development package exceeding Rs 100 billion for Karachi in its 2026 27 provincial budget, outlining a wide ranging programme focused on transport, water supply, sewerage, drainage, sanitation, healthcare, education and urban infrastructure.
Presenting the budget in the Sindh Assembly, Chief Minister Syed Murad Ali Shah said the investment initiative is designed to improve civic services, ease traffic congestion and accelerate the transformation of Pakistan’s largest city into a more modern and efficient urban centre.
According to the chief minister, Karachi currently has 816 ongoing development schemes with a cumulative cost of Rs 644.3 billion. For the upcoming fiscal year, more than Rs 100.19 billion has been earmarked for the city, including 167 major projects valued at over Rs 500 million each and 110 mega projects costing more than Rs1 billion.
A significant portion of the allocation will support water and sewerage infrastructure. More than Rs 32 billion is already being spent under the Greater Karachi Sewerage Plan (S-III), while an additional Rs 1 billion has been allocated to maintain progress on the project. The Lyari Transformation Package will receive Rs 4.37 billion, while Rs 108.1 billion has been designated for 822 development schemes across the city.
To address Karachi’s persistent traffic challenges, the government has approved several major infrastructure projects. These include a Rs 1.2 billion flyover connecting Airport Road to Star Gate and a Rs 1.5 billion right-turn underpass linking Malir Halt with Shahrah e Faisal. Additional funding has been allocated for a flyover at the Sir Shah Suleman Road crossing over Gujjar Nala and improvements at key intersections along Shah Faisal Road.
The budget also prioritises drainage and flood mitigation measures. Allocations include Rs 1 billion for the third phase of major storm-water drain construction and rehabilitation projects, Rs 1.1 billion for the restoration of Gujjar Nala and its service roads, and Rs 280 million for a drainage project extending from the M-9 Motorway to Thado Nala.
In the sanitation sector, the government has earmarked Rs 1.66 billion for the establishment of six modern garbage transfer stations. More than Rs 9 billion has been allocated for the Solid Waste Emergency and Efficiency Programme, while Rs 1.18 billion will be spent on upgrading the Jam Chakro and Gond Pass landfill sites.
Water supply infrastructure will also receive additional support. The budget allocates Rs 575.2 million for the expansion of the distribution network associated with the K-IV water supply project. Further investments will be directed toward upgrading pumping stations in Karachi’s East and Central districts and laying a new water supply line along the Lyari Expressway corridor.
Public transportation remains a key focus of the development agenda. The chief minister announced that 25 double decker buses will begin operations within the next three months, with an estimated daily ridership of 30,000 to 35,000 passengers. The government also plans to expand the Pink Bus Service and add 100 electric buses to Karachi’s growing public transport fleet.
To improve commuter convenience, the budget includes funding for automated fare collection systems across the Green Line, Orange Line and Peoples Bus Service networks. Meanwhile, the Red Line Bus Rapid Transit (BRT) project has been allocated Rs 13.2 billion, while more than Rs3.5 billion has been earmarked for the Yellow Line corridor.
The social sector has also received substantial allocations. The budget sets aside Rs 1 billion for the Sindh Infectious Diseases Hospital and Rs 1.4 billion for a paediatric cardiac unit at the National Institute of Cardiovascular Diseases. Development funds have additionally been approved for a new medical college, the Karachi Education Complex, Bilawal Bhutto Engineering College Lyari and Shaheed Zulfikar Ali Bhutto Law University.
Chief Minister Murad Ali Shah said the government remains committed to strengthening Karachi’s infrastructure through sustained investments in public transport, healthcare, water supply and sewerage services. He added that the Rs 60.7 billion Shahrah e Bhutto Expressway has already begun improving mobility across the city by reducing travel times to approximately 25 minutes while facilitating the movement of around 25,000 vehicles daily.
Officials believe the development package will play a critical role in addressing Karachi’s longstanding infrastructure challenges and supporting the city’s continued economic and urban growth.

Karachi: [ReNews Pakistan]
The Karachi Metropolitan Corporation has announced plans to develop a mangroves and biodiversity park along China Creek, a major environmental initiative aimed at protecting the city’s coastal ecosystem and promoting climate resilience, eco tourism and public awareness.
Karachi Mayor Barrister Murtaza Wahab announced the project during a visit to the proposed site. He said the initiative would help safeguard Karachi’s natural coastal assets while creating a meaningful public space for education, research, recreation and environmental learning.
According to the mayor, the proposed park is being designed as a long-term investment in Karachi’s environmental future at a time when the city is facing rapid urban growth, rising climate risks and increasing pressure on its coastal areas.
“Environmental sustainability must remain central to our development agenda,” Mayor Wahab said, adding that the project would help preserve Karachi’s ecological resources while encouraging tourism, community participation and greater public understanding of nature conservation.
The proposed biodiversity park will include dedicated mangrove conservation zones, ecological trails, educational facilities, public awareness programmes and a learning centre focused on environmental protection and coastal biodiversity.
KMC officials said the project would help connect citizens, students, researchers and visitors with Karachi’s natural environment. The learning centre is expected to play an important role in educating people about the importance of mangroves, marine life, climate adaptation and sustainable urban development.
Officials noted that mangrove forests are among the most important natural defences for coastal cities. They protect shorelines from erosion, reduce the impact of storm surges, support marine biodiversity and serve as breeding grounds for fish and other aquatic species.
Mangroves are also considered highly effective natural carbon sinks, as they absorb and store large quantities of carbon dioxide. Environmental experts believe that protecting and expanding mangrove cover can help cities such as Karachi respond more effectively to climate change, rising sea levels and extreme weather events.
The China Creek mangroves and biodiversity park forms part of broader efforts to strengthen Karachi’s environmental infrastructure and promote a more sustainable model of urban development.
The project is expected to provide both ecological and social benefits by preserving natural habitats, improving public access to green and coastal spaces, and encouraging environmental responsibility among citizens.

Karachi: [ReNews Pakistan]
The Karachi Metropolitan Corporation (KMC) has sought approval from the City Council to introduce a new “Entertainment Tax” aimed at generating additional municipal revenue from the hospitality and events sector.
Under the proposed plan, the tax would be levied at a rate of 1% on the total bill of hotels, restaurants, guest houses, lodges, marriage halls, marquees, wedding lawns, Airbnb properties, and banquet facilities. Officials estimate that the measure could generate approximately Rs 1 billion annually.
According to a public notice issued by KMC Municipal Commissioner Abrar Jaffar, the proposal will be presented in the upcoming financial year’s budget. The notice also invites public feedback, while a hearing has been scheduled for June 10 at the KMC headquarters to review objections and suggestions.
KMC’s tourism and municipal administration departments stated that the proposed tax is intended to strengthen the corporation’s financial position and improve public service delivery. The plan introduces a new category titled “Entertainment Tax – City Tourism and Hospitality” along with supporting bylaws under the existing tax framework.
Officials said that under the Sindh Local Government Act 2013, KMC is empowered to impose taxes, fees, and charges within its jurisdiction. If approved, the entertainment tax will become part of KMC’s broader revenue generation strategy.
This proposal marks the second major revenue initiative by KMC in recent years. In July 2024, the corporation introduced the Municipal Utility Charges Tax (MUCT), which is collected through K-Electric bills and currently generates around Rs 4 billion annually.