The Sindh government has secured an in-principle agreement from the Asian Development Bank (ADB) to support the revival of the long-awaited Karachi Circular Railway (KCR), a project Chief Minister Syed Murad Ali Shah described as a “lifeline” for the city, during high-level talks on a proposed development pipeline worth nearly $3 billion.
In a meeting between the chief minister and a high-powered ADB delegation led by Country Director Ms Emma Fan, both sides agreed to deepen their development cooperation and expedite priority transport projects across the province, according to information by CM House.
Chief Minister Shah underscored that the KCR is a flagship priority for the provincial administration, stating that the megacity urgently requires the railway to serve as a feeder to various Bus Rapid Transit (BRT) lines and help resolve persistent transport issues.
Building on the existing partnership for the swiftly progressing Red Line BRT project, the chief minister argued it was the right time for the bank to extend its financial and technical support to the circular railway scheme.
“We want to revive it with modern infrastructure and integrated urban planning,” CM Murad Shah said, noting that restoring the KCR would significantly reduce congestion, lower carbon emissions, and support inclusive economic growth in Pakistan”s largest city.
The ADB country director consented in principle to the KCR project, advising the provincial government to submit the necessary documents to be placed before the bank’s board for formal approval.
The discussion also covered plans to expand electric bus services in Karachi and introduce them in other divisional headquarters, including Hyderabad, Sukkur, and Larkana, under a sustainable mobility framework.
“Electric buses will not only modernise public transport but also help us tackle climate change and reduce fuel dependence,” the chief minister stated, articulating a vision for a “climate-resilient, inclusive, and efficient transport system” for all major cities in Sindh.
In response, the ADB discussed possible financing options, including project readiness financing and co-financing arrangements. It was agreed that the Sindh government would submit a formal proposal to the bank for the e-buses initiative.
The meeting reviewed a proposed ADB development pipeline for 2026-2029 valued at nearly $3 billion. This portfolio covers major investments in strengthening the health workforce, secondary education, sustainable mobility, urban and water projects, rural WASH programmes, coastal resilience, and public-private partnerships.
“After the 2022 floods, we are not just rebuilding infrastructure – we are building back better and climate-resilient,” Mr Shah remarked, linking the new projects to post-disaster recovery efforts.
To prevent delays and cost overruns, both parties acknowledged the need to improve project readiness, streamline approvals, and strengthen institutional capacity. The chief minister directed the Transport and Mass Transit, Planning and Development, and Finance departments to accelerate preparatory work.
Ms Fan appreciated Sindh’s reform agenda and reaffirmed the Bank’s commitment to supporting the province in sustainable transport, urban services, climate resilience, education, and inclusive growth.
The meeting, held at the CM House, was attended by Chief Secretary Asif Hyder Shah, Chairman Pand D Najam Shah, and Secretary to the CM Asif Jameel. The source also noted the presence of a World Bank delegation which included Country Operations Head Mr Nissanka Salgado, Program Officer Mr Khayyam Abbasi, and Senior Project Officer Mr Salman Mian, among others.