Summary: Sindh Local Government Minister Syed Nasir Hussain Shah has highlighted the federal government’s unfulfilled commitment of Rs100 billion for Karachi, despite the city’s significant economic contribution. Builders, facing severe delays and institutional hurdles, express concerns about investors relocating, while an upcoming Saudi investment offers a potential boost.
Karachi’s Rs100bn pledge remains an unfulfilled promise from the federal government, according to Sindh Minister for Local Government, Syed Nasir Hussain Shah. Speaking on Saturday, Mr. Shah stated that while a Bus Rapid Transit (BRT) project has been offered, the promised Rs100 billion vital for Karachi’s development has yet to materialize. This is particularly concerning given Karachi’s significant 70 per cent contribution to the national economy, as highlighted by the minister.
Addressing members of the Association of Builders and Developers (Abad) at Abad House, Minister Shah assured that Karachi’s infrastructure is slated for substantial improvement soon. He also pledged full cooperation from the Sindh government should Abad submit a draft for low-cost housing schemes, indicating a desire to collaborate on affordable housing initiatives.
Addressing Karachi’s Rs100bn Pledge Amidst Development Challenges
The issue of Karachi’s Rs100bn pledge casts a shadow over the city’s development efforts. Mr. Shah claimed that the 27th Constitutional Amendment was specifically drafted with the benefit of Karachi’s residents in mind. He also touched upon the impracticality of creating new provinces, citing Sindh’s existing struggles to manage current provincial machinery costs, making new assemblies, courts, or infrastructure unfeasible. As reported by SindhNews.com, the minister affirmed that Sindh’s local government system surpasses those in other provinces, and the government is fully aware of the construction sector’s challenges.
He confirmed that pending approvals would be issued promptly, emphasizing the goal of providing affordable housing on time. Acknowledging deficiencies within departments like the Sindh Building Control Authority (SBCA), Mr. Shah stated that officers “unjustly harassing” builders have been removed. He stressed that while illegal construction must cease, legitimate projects should proceed unhindered. “We do not want builders to leave the country,” he remarked, assuring developers of government-private sector collaboration to create jobs, expand housing, and strengthen the construction economy.
Abad Chairman Muhammad Hassan Bakshi voiced the industry’s frustrations, noting that institutional hurdles in Karachi have reached “extreme levels,” pushing the construction sector into crisis. Routine delays, from commercial plot transfers to legal issue resolutions, are rampant. “Abad members are now reluctant to invest in Karachi, and many have shifted their investments to Dubai and Lahore,” Mr. Bakshi revealed, painting a stark picture of investor confidence.
Despite these local challenges, a significant potential boost for development in line with Karachi’s Rs100bn pledge could come from a recently signed Memorandum of Understanding (MoU) between the Saudi government and Abad. Under this agreement, Saudi Arabia is set to invest a substantial $500 million in Karachi’s construction sector. This investment underscores the city’s potential, even as local builders grapple with bureaucratic inefficiencies. Mr. Bakshi urged the digitization of land records and project approvals to streamline operations.
Conclusion:
While Karachi continues to await the fulfillment of the Rs100bn federal pledge, the city’s development is a complex interplay of provincial assurances, builder frustrations, and promising international investments. The ongoing commitment to reform, coupled with external financial inflows, will be crucial in overcoming current hurdles and significantly improving Karachi’s infrastructure and housing landscape.