Key Takeaways
- Sindh cabinet approved a 40% increase in the cost of DHA’s water line project.
- The revised budget now stands at Rs14.237 billion, up from Rs10.56 billion.
- Officials cited changes in engineering design and inflation as key factors.
The Sindh cabinet has approved a significant increase of 40% in the cost of a dedicated water line project supplying the Defense Housing Authority (DHA) from Dumlottee, an area on the outskirts of Karachi. The revised budget now stands at Rs14.237 billion, up from the initial allocation of Rs10.56 billion.
Senior Minister Sharjeel Inam Memon explained that the increase reflects changes in engineering design, pipeline material, taxes, inflation, filtration facilities, and monitoring systems. These factors have collectively contributed to the substantial rise in costs, according to official statements.
To ensure long-term financial sustainability, the cabinet has also approved an increase in the bulk water tariff from Rs0.60 to Rs0.70 per gallon. This move is expected to generate net savings of approximately Rs2.31 billion over the next decade, as outlined by government officials.
In addition to the water line project, the Sindh cabinet has given in-principle approval for a modern logistics park or truck terminal on Karachi’s Northern Bypass. The proposed facility will include essential components such as truck parking, warehouses, container yards, fuel stations, repair workshops, and driver facilities. The government plans to develop this project through private sector investment on at least 400 acres of land.
The approval for the logistics park is part of a broader strategy to reduce congestion and improve freight movement in Karachi. This initiative aims to enhance transportation efficiency and support economic growth in the region, according to official statements from the cabinet meeting.
While the water line project faces increased costs, officials remain optimistic about its long-term benefits. The revised financial model is expected to provide substantial savings over the next decade, despite the initial hike in expenses.
