The estimated cost of the Greater Karachi Bulk Water Supply Scheme (K-IV) has ballooned by approximately 600 percent, rising from an originally approved PKR 25.55 billion to PKR 171.71 billion.
The massive escalation is attributed primarily to prolonged execution delays and the depreciation of the Pakistani rupee against the US dollar.
The cost overrun underscores the severe financial headwinds facing large-scale infrastructure development in Pakistan.
As the local currency weakens, the import component of construction materials and equipment becomes significantly more expensive, inflating project budgets beyond initial fiscal allocations.
This dynamic is particularly acute for water supply schemes that rely on specialized imported technology and piping.
The K-IV project is critical for addressing chronic water shortages in Karachi, Pakistan’s largest city.