Karachi K-IV Water Scheme Approved at Rs172bn After 975pc Cost Escalation
The Central Development Working Party has approved Karachi's K-IV water scheme at a revised cost of Rs172 billion, nearly ten times the original Rs15.8 billion estimate set in 2007. The project's carrying capacity has been cut from 650MGD to 260MGD, and a 50MW electricity supply for its pumping stations forms a key part of the approved scope.
The Central Development Working Party (CDWP) has approved Karachi's Greater Bulk Water Supply Scheme — known as K-IV — at a revised cost of Rs172 billion, a 975 per cent escalation from the original 2007 estimate of Rs15.8 billion. The scheme, which includes a 50MW dedicated electricity supply for its pumping stations, has been scaled back to 260 million gallons per day (MGD) from the originally planned 650MGD, and now targets completion by June 2027.
A Project Cost That Has Risen Almost Tenfold
K-IV was first approved in 2007 as a 121-kilometre pipeline to carry water from Keenjhar Lake to Karachi at an estimated cost of Rs15.8 billion, with a planned capacity of 650MGD. In 2014, the Executive Committee of the National Economic Council (Ecnec) revised the estimate to Rs25.5 billion, incorporating a 50MW electricity supply for pumping stations plus bridges and tunnels along the route.
Contracts for a reduced 260MGD phase were awarded in June 2022 at Rs98.5 billion. Since then, costs have climbed a further 75 per cent to Rs172 billion — the figure approved by the CDWP on Thursday. Seven development schemes were cleared at the meeting in total, with a combined value of Rs253 billion, making K-IV the dominant single item.
Financing Problems Behind a 13-Year Overrun
WAPDA (the Water and Power Development Authority) Chairman Gen Muhammad Saeed told a parliamentary panel that financing problems were the primary cause of delays. The 2022 contracts required completion by October 2023. That deadline has now shifted to June 2027 — a slip of more than three years, on a project already over 13 years behind its original schedule.
Planning and Development Minister Ahsan Iqbal, who presided over the CDWP meeting, cited "far-reaching social and economic benefits" for Karachi residents and said the federal investment aimed to free low-income households from dependence on private water tankers — a significant and largely unregulated cost borne by millions of residents across the city.
The 50MW Power Requirement and the Karachi Grid
When Ecnec revised K-IV in 2014, it incorporated a 50MW dedicated electricity supply for the pumping stations that will push water 121 kilometres from Keenjhar Lake into Karachi. In Karachi, power is supplied entirely by K-Electric (KE) rather than a government DISCO, so this new industrial load will require coordination between WAPDA, KE, and the national grid operator NTDC (the National Transmission and Despatch Company). Details of how the 50MW will be sourced — whether from KE's existing generation capacity, the national grid, or a dedicated captive plant — have not been publicly disclosed.
Frequently Asked
Questions about this story
How much has the cost of the K-IV water project increased since it was originally planned?
K-IV was originally estimated at Rs15.8 billion in 2007. The CDWP has now approved it at Rs172 billion — a 975 per cent increase over 19 years. Even since contracts were awarded in June 2022 at Rs98.5 billion, costs have risen a further 75 per cent.When is the K-IV project now expected to be completed?
The current phase of K-IV is targeted for completion by June 2027. Contracts signed in June 2022 originally specified an October 2023 deadline, meaning the project is now more than three years behind its most recent contracted schedule.Why has the K-IV project been delayed for over 13 years?
WAPDA Chairman Gen Muhammad Saeed attributed the delays primarily to financing problems. The project has accumulated an overall time overrun of more than 13 years against its original schedule, with the most recent phase alone slipping over three years past its 2023 contract deadline.Will K-IV fully solve Karachi's water shortage once it is completed?
No. The approved scheme will deliver 260 million gallons per day (MGD), less than half the 650MGD originally planned. K-IV will significantly improve Karachi's piped water supply and reduce tanker dependency, but will not fully meet the city's demand.How does the K-IV project affect Karachi's electricity supply and K-Electric customers?
K-IV includes a 50MW electricity supply for its water-pumping stations, a load that will fall on Karachi's grid managed exclusively by K-Electric. How this power will be sourced has not yet been confirmed publicly, but it represents a new large industrial demand on an already constrained urban network.
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