By Ayesha Saba

Three major water supply and wastewater management projects costing a combined Rs227.2 billion have been recommended for further approval, targeting improved access to safe and reliable water services in Karachi, Lahore and Gwadar.

According to the Ministry of Planning, Development and Special Initiatives' Monthly Development Update – September 2026, available with Wealth Pakistan, the three projects were recommended by the Central Development Working Party (CDWP) to the Executive Committee of the National Economic Council (ECNEC) during August.

The projects include the Greater Karachi Bulk Water Supply Scheme (K-IV) Phase-I, the Lahore Water Supply Project involving construction of a surface water treatment plant at BRBD Canal, and a scheme to supply water to Gwadar town from Mirani Dam.

At Rs171.81 billion, the second revised K-IV Phase-I is by far the largest of the three projects. The scheme is designed to provide 260 million gallons per day (MGD) of bulk water to Karachi and is sponsored by the Ministry of Water Resources.

The project's recommendation represents another development-stage milestone for the major water supply scheme. The Planning Ministry's report lists the second revised K-IV project as recommended to ECNEC rather than being finally approved by the higher forum.

In Lahore, the CDWP recommended the Rs31.59 billion Lahore Water and Waste Water Management Project, involving construction of a surface water treatment plant at the BRBD Canal.

The project, sponsored by the Punjab government, is identified in the report as the Lahore Water Supply Project and is intended to strengthen the city's water treatment and distribution infrastructure.

The third major scheme targets Gwadar, where a Rs23.82 billion water supply project has been proposed to bring water to the city from Mirani Dam.

Sponsored by the Balochistan government, the scheme forms part of the Balochistan Socio-Economic Development Projects Phase III and was also recommended to ECNEC by the CDWP on August 28.

Together, the three projects carry a combined reported cost of approximately Rs227.2 billion, making water supply and wastewater management one of the largest areas of development investment considered by the CDWP during August.

The Planning Ministry said the projects are intended to improve water supply and wastewater management through modern treatment and distribution infrastructure and enhance access to safe, reliable and sustainable water services in the three cities.

The Karachi project dominates the proposed investment, accounting for more than three-fourths of the combined cost of the three schemes.

It is also expected to have a significant employment impact. The report says infrastructure schemes, particularly K-IV, account for the largest share of employment expected from the development projects considered during August because of the substantial construction, engineering and ancillary workforce required for large-scale projects.

Overall, development projects approved and recommended during the month are expected to generate 23,656 employment opportunities, comprising 4,538 direct and 19,118 indirect jobs. Water supply and physical infrastructure are among the main sectors represented in the portfolio.

The three water schemes form part of a much larger set of development proposals processed during August.

The CDWP held two meetings and considered 19 agenda items, including 14 development projects. Seven projects costing Rs25.4 billion were approved by the forum, while five projects worth Rs283.9 billion were recommended to ECNEC.

The water projects alone account for roughly 80% of the combined value of the five projects recommended to ECNEC, underscoring the scale of the proposed investment in urban water infrastructure during the month.

The proposals come within the government's Rs1 trillion federal Public Sector Development Programme for FY2026-27, which includes Rs255 billion as foreign-loan rupee cover. Development resources are being prioritised for fast-moving, high-impact ongoing projects amid fiscal constraints.

The government is simultaneously tightening its approach to public investment, with greater emphasis on project readiness, economic and social impact and efficient utilisation of development resources.

For Karachi, Lahore and Gwadar, the three projects represent proposed investment in different parts of the urban water chain — bulk supply in Karachi, surface-water treatment and supply infrastructure in Lahore, and water conveyance from Mirani Dam to Gwadar.

Their next key step is consideration by ECNEC, as the September development update records all three schemes as recommended by the CDWP rather than finally approved by ECNEC.

Credit: INP-WealthPk