ADB assures $1bn support for Karachi Circular Railway revival

KARACHI: The Asian Development Bank (ADB) has assured the Sindh government of $1 billion in support for the revival of the Karachi Circular Railway (KCR), providing fresh momentum to a transport project that has faced repeated delays over the years.

According to details shared at a meeting on Tuesday, a high-level ADB delegation informed Sindh Chief Secretary Asif Hyder Shah that the bank was prepared to finance the KCR revival. The support package includes an initial $10 million for preparatory work, including design review, operational planning, institutional arrangements and financing models.

The latest development comes as the Sindh government continues to pursue alternative funding avenues for the long-delayed scheme after the KCR did not secure priority status under the China-Pakistan Economic Corridor (CPEC).

In December 2016, the project was included in CPEC at the request of the Sindh government and was later cleared by the Executive Committee of the National Economic Council in 2017. However, the plan did not move forward as expected.

The Pakistan Tehreek-i-Insaf government later chose to pursue the project under a build-operate-transfer arrangement through a public-private partnership model, with substantial subsidies for the private partner. That approach was subsequently dropped by the Pakistan Democratic Movement-led government, which returned to the option of seeking Chinese investment under CPEC.

A planned visit by Sindh Chief Minister Syed Murad Ali Shah to China in September 2024 for financial and technical assistance did not take place, and the project remained stalled. In November 2025, Prime Minister Shehbaz Sharif had assured the chief minister that the federal and provincial governments would work together to revive the KCR, but no progress followed.

Earlier this year, in February, Chief Minister Shah met an ADB delegation and sought the bank’s assistance for the project’s revival.

Urban transport planning discussed

Tuesday’s meeting between the chief secretary and the ADB delegation also reviewed plans for sustainable, integrated and modern urban transport systems in Karachi, Hyderabad, Sukkur and Larkana. The stated objective was to improve public transport, ease traffic congestion, encourage environment-friendly mobility and strengthen future transport planning.

According to an official statement, the chief secretary told the visiting delegation that the KCR revival was a priority project that could improve mobility in Karachi, reduce pressure on roads, provide affordable mass transit and support economic activity.

The chief secretary also directed the relevant departments to ensure timely submission of documents, maintain close coordination with the ADB and complete preparatory work within the prescribed timelines.

The meeting was attended by ADB Deputy Country Director Hussain Haider and senior ADB representatives Wonbae Seo, Hamid Khan, Umer Shafiq and Muhammad Sadiq. Planning and Development Board Chairman Najm Shah, Transport Secretary Asad Zamin and other senior provincial officials were also present.