KARACHI: After years of delays and failed revival attempts, the Karachi Circular Railway (KCR) project received a boost on Tuesday as the Asian Development Bank (ADB), giving a nod to the Sindh government’s request, assured it of $1 billion support in funding, raising hopes for revival of 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 the 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 government of the Pakistan Tehreek-i-Insaf 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 Pakistan Democratic Movement-led government, which shifted back to seeking Chinese investment under CPEC.

In meeting with CS, the Bank promises $10m initial support for design review, operational planning

However, 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 materialised.

In November 2025, Prime Minister Shehbaz Sharif had assured the Sindh CM that the federal government in collaboration with the provincial government would revive the project, but there was no development since then.

In February, CM Shah had met an ADB delegation and sought the bank’s help in reviving KCR.

Tuesday’s meeting between the chief secretary and 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 the statement, the CS 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 that 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 departments concerned 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 in the meeting.

Published in Dawn, May 13th, 2026