By Farooq Awan

Several urban transport and municipal infrastructure projects in Pakistan received foreign financing during the first seven months of the current fiscal year, according to the Ministry of Economic Affairs’ latest report on foreign economic assistance.

The report shows that a number of development initiatives aimed at improving urban mobility, municipal services, and water and sanitation systems attracted disbursements from international development partners during July–January FY2025-26.

Among the prominent projects receiving external funding during the reporting period was the Karachi Bus Rapid Transit (BRT) Red Line project. According to the report, the project received disbursements totaling $17.06 million during the July–January period. The project is being implemented in Sindh and is designed to improve public transport services in Karachi through a dedicated bus corridor.

Another major urban development initiative receiving foreign financing is the Karachi Mobility Project. The report indicates that $56.33 million was disbursed for the project during the seven-month period. The initiative focuses on improving transport infrastructure and mobility conditions in the country’s largest metropolitan area.

Urban municipal services have also attracted development financing from international partners. The Karachi Water and Sewerage Services Improvement Project received disbursements of $0.08 million during July–January FY2025-26. The project aims to strengthen water supply and sewerage services in Karachi.

Foreign financing was also directed toward projects designed to improve water supply and sanitation infrastructure in Punjab. The Punjab Rural Sustainable Water Supply and Sanitation Project received $20.00 million during the reporting period. The initiative focuses on expanding access to safe drinking water and sanitation facilities in rural areas of the province.

Another development initiative receiving foreign assistance is the Punjab Urban Land Systems Enhancement Project. According to the report, the project received $16.04 million during July–January FY2025-26. The project is designed to strengthen urban land administration systems and improve the management of urban land resources.

In addition to these projects, the report shows that several city improvement programs supported by international development institutions are also being implemented in different regions of the country. These initiatives aim to improve municipal infrastructure, strengthen local governance systems, and enhance service delivery in urban centers.

Urban infrastructure projects supported by development partners include city improvement programs in Khyber Pakhtunkhwa and urban development initiatives in Punjab. These programs focus on upgrading municipal infrastructure, improving urban services, and strengthening institutional capacity for urban management.

The Ministry of Economic Affairs’ report indicates that project-related foreign assistance totaled $1,901.48 million during July–January FY2025-26. These funds were disbursed for a wide range of development projects, including urban transport systems, municipal infrastructure, water supply schemes, and sanitation initiatives.

The report further shows that foreign financing for urban development projects is being provided by multiple development partners, including multilateral institutions such as the Asian Development Bank and the World Bank Group, as well as other international financing institutions.

The disbursements recorded during the reporting period reflect ongoing international support for Pakistan’s efforts to improve urban infrastructure and expand access to municipal services in major cities and rural areas.

Credit: INP-WealthPk