CITY – Vast Seaside Housing Scheme Labelled a Massive Scam After 40-Year Stalemate

Seventy-five thousand plot owners in Karachi’s largest coastal housing project have been left in limbo for over four decades, with the head of the Pasban Democratic Party (PDP) decrying the stalled Hawksbay Scheme 42 as a product of ‘sheer negligence’ by the Sindh government and its associated authorities.

Speaking on Sunday, PDP Chairman Altaf Shakoor stated that the project, initiated by the Karachi Development Authority (KDA) in 1984, was envisioned as Asia’s largest residential scheme. Spanning 6,000 acres with 75,000 plots, it was designed to provide affordable seaside housing to approximately 57,000 low- and middle-income families.

Shakoor condemned the nearly half-century delay as a prime example of bad governance, asserting that despite initial allotments, the project remains largely unpopulated. He claimed that as of late 2025, no significant progress has been made, leaving thousands of allottees, including overseas Pakistanis, unable to construct homes on their designated plots.

The PDP leader highlighted a critical lack of basic utilities, such as water and electricity, as a primary failure. He noted that a main water pipeline installed in 2008 for Rs250 million remains unconnected, while an estimated Rs30 billion is now required to complete the infrastructure.

According to Shakoor, the Lyari Development Authority (LDA), which took over the scheme in 1996, has cited unreleased funds from the KDA as a major obstacle. He added that the LDA’s own plans to generate revenue by auctioning commercial plots in early 2025 were never executed.

Shakoor described the situation as a ‘textbook example of corruption,’ alleging that many allottees now view the project as a massive scam. He claimed that organised mafias, in collusion with officials, have encroached upon the land, illegally selling portions as property values increased over time.

He further accused the ruling political party in the province of allowing informal settlements to expand in the area to secure vote banks, which complicates any future development and eviction efforts.

The project’s progress is also reportedly hampered by overlapping jurisdictional claims, with the Karachi Port Trust (KPT) asserting authority over coastal areas and initiating legal action against encroachments.

In his statement, Shakoor made a direct appeal to PPP Chairman Bilawal Bhutto and Sindh Chief Minister Syed Murad Ali Shah to personally intervene and resolve the issue for the relief of the affected families.

He contrasted the situation in Sindh with development efforts in Punjab, suggesting that the stalled scheme is a huge embarrassment for the provincial government.

The PDP Chairman concluded by demanding that the Sindh government, LDA, and other associated organisations take immediate action to commence development work and grant possession of the plots to the long-suffering allottees without further delay.