• Under the Rs14.2bn scheme, FWO to lay dedicated line from Dumlotee to provide water to DHA residents
• Sharjeel says cost raised due to changes in design, pipeline material, inflation
KARACHI: The Sindh cabinet on Thursday approved a 40 per cent increase in the cost of a dedicated water line, to be laid by the Frontier Works Organisation (FWO), to supply water to Defence Housing Authority (DHA) from Dumlotee, on the outskirts of Karachi.
In July 2025, the cabinet had approved a Rs10.56 billion project to lay a dedicated pipeline from Dumlottee to the DHA as residents of the salubrious parts of the city face severe water shortages, heavily depending on water tankers.
However, on Thursday, the cabinet revised the engineering, procurement and construction (EPC) cost of the project to Rs14.237bn.
Briefing newsmen after the cabinet meeting, Senior Minister Sharjeel Inam Memon said that the increase in the EPC cost of the project was due to changes in engineering design, pipeline material, taxes, inflation, completion of filtration facilities, installation of a monitoring system and other project requirements.
The cabinet also approved appointment of a consultant under the relevant procurement law and endorsed an increase in the bulk water tariff from Rs0.60 to Rs0.70 per gallon to ensure long-term financial sustainability.
According to the revised financial model, the project is expected to yield net savings of about Rs2.31 billion over the next 10 years.
Logistics park on Northern Bypass
The cabinet gave in-principle approval to establish a modern logistics park or truck terminal on Karachi’s Northern Bypass (M-10) to reduce traffic congestion, improve freight movement and facilitate port-related logistics.
The cabinet was informed that studies by the Japan International Cooperation Agency (JICA) and the World Bank had recommended relocating heavy truck traffic out of the city and developing modern logistics infrastructure.
The proposed facility will include truck parking, warehouses, container yards, fuel stations, repair workshops, driver facilities and other logistics services.
The cabinet approved developing the project through private sector investment on at least 400 acres of privately available land along the Northern Bypass under a licensing and regulatory framework to be prepared by the government.
The cabinet directed the transport and mass transit department to prepare the regulatory framework and implementation plan.
The cabinet reviewed the province’s wheat position and a proposal to purchase 220,665 metric tons from the Pakistan Agricultural Storage and Services Corporation (PASSCO) to stabilise reserves.
It was informed that the province produced 4.7 million tons of wheat in 2025-26. With carryover stocks, availability stood at 4.84 million tons against a requirement of 6.53 million tons, leaving a projected shortfall of 1.69 million tons.
The chief minister decided that if the federal government imports wheat, the province would purchase 500,000 tons. He also ordered a crackdown on hoarders.
For government employees, the cabinet approved a two per cent Disparity Allowance 2026 for BPS-1 to 16 from July 1, 2026, and a 50 per cent increase in Travelling Allowance. Special Travelling Allowance for disabled employees was increased to Rs10,000.
The cabinet approved four strategic task forces on economy and industry, water, climate change, and artificial intelligence and digital transformation.
A committee headed by the chief minister will finalise their composition.
It also gave in-principle approval to the Sindh BISE Reforms Package 2026 for the province’s seven boards, with a 24-month implementation plan.
Reforms include EMIS, OMR exams, on-screen marking, automated results and digital certificates.
The upper age limit for board chairpersons was raised from 55 to 63 years.
The cabinet extended the State Life health insurance scheme for government employees by six months till Dec 31, 2026, at a cost of Rs2.426 billion, and declared RBUT Hospital Shikarpur a teaching hospital.
Other decisions included approval for the Mirpurkhas Water and Sewerage Corporation, transfer of 22 acres for Kunri Chilli Market, amendments to anti-corruption rules, and approval for Sindh’s participation in the 2026 Hunan International Sister Cities Forum in China and sister-province ties with Hunan.
Published in Dawn, July 24th, 2026