ADB Pledges $1 Billion for Karachi Circular Railway Revival After Years of Delays
KARACHI – After years of delays and failed revival attempts, the Karachi Circular Railway (KCR) project received a major boost on Tuesday as the Asian Development Bank (ADB) assured the Sindh government of $1 billion in funding support, raising hopes for the long-delayed transport scheme.
A high-level ADB delegation met Sindh Chief Secretary Asif Hyder Shah and informed him that the bank was ready to finance the KCR revival with $1 billion, including an initial $10 million for preparatory work such as design review, operational planning, institutional arrangements, and financing models.
The latest meeting reflects Chief Minister Syed Murad Ali Shah’s efforts to explore alternative financing options after the KCR failed to gain priority status under CPEC projects.
In December 2016, the KCR was included in CPEC at the request of the Sindh government and later approved by the Executive Committee of the National Economic Council in 2017. However, the then PTI government opted to revive it on a build-operate-transfer basis under a public-private partnership model with heavy subsidies for the private partner. That plan was later abandoned by the subsequent PDM-led government, which shifted back to seeking Chinese investment under CPEC.
The project continued to face delays, and even a planned visit by the Sindh CM to China for financial and technical assistance in September 2025 never materialized.
In November 2025, Prime Minister Shehbaz Sharif assured the Sindh CM that the federal government, in collaboration with the provincial government, would revive the project, but no development followed. In February this year, CM Shah met an ADB delegation and sought the bank’s help in reviving KCR.
Tuesday’s meeting between the chief secretary and the ADB delegation focused on developing sustainable, integrated, and modern urban transport systems in Karachi, Hyderabad, Sukkur, and Larkana, with the aim of improving public transport, reducing traffic congestion, promoting environment-friendly mobility, and strengthening future transport planning.
According to an official statement, the chief secretary told the visiting delegation that the revival of KCR was a priority project that can improve mobility in Karachi, reduce pressure on roads, provide affordable mass transit, and support economic activity. He said the Sindh government was committed to building a modern, safe, efficient, and sustainable public transport system across the province.
The chief secretary also directed the concerned departments to ensure timely submission of documents, close coordination with ADB, and completion of preparatory work within the given timelines.
The meeting was attended by Deputy Country Director Hussain Haider and senior ADB representatives Wonbae Seo, Hamid Khan, Umer Shafiq, and Muhammad Sadiq. Planning & Development Board Chairman Najm Shah, Transport Secretary Asad Zamin, and other senior officers of the provincial administration also participated.
