Karachi Red Line BRT cost surges to Rs184.6 billion

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ISLAMABAD: The estimated cost of Karachi’s Red Line Bus Rapid Transit (BRT) project has more than doubled to Rs184.63 billion from the original Rs78.38 billion, according to the latest project position paper.

The revised PC-I puts the project cost at $661 million, compared with $493.51 million under the original plan. The earlier estimate was based on an exchange rate of Rs158.83 to the dollar, while the revised calculation uses Rs280 per dollar.

According to the document, Rs37.22 billion had been spent on the project by May 31, 2026, while work worth Rs146.95 billion remains to be completed.

Civil works account for the biggest share of the revised cost, rising to Rs85.16 billion from Rs40.97 billion in the original PC-I. Of this amount, Rs24.77 billion had been utilised by the end of May, leaving Rs60.39 billion yet to be spent.

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The revised cost of the 24-kilometre main corridor and two depots stands at Rs61.76 billion. Off-corridor bus stops and related improvements are estimated at Rs668 million, while the staging facility and mezzanine floor have been placed at Rs9.46 billion.

The expanded control centre for the BRT network is now estimated to cost Rs1.88 billion, while civil works contingencies have been set at Rs6.85 billion.

The equipment component has also seen a sharp increase, climbing to Rs41.38 billion from Rs15.42 billion in the original project plan.

This includes Rs20.08 billion for rolling stock, Rs1.06 billion for non-motorised transport feeder e-vehicles, Rs8.4 billion for other equipment, Rs5.34 billion for a waste-to-fuel biogas plant and Rs6.5 billion for electro-mechanical equipment.

The revised cost of energisation has been put at Rs2.8 billion.

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Other major allocations include Rs2.13 billion for the bus industry transition programme, Rs5.77 billion for consultants, Rs2.09 billion for environmental and social mitigation and Rs755 million for land acquisition.

The document also provides Rs27 billion for taxes, Rs3.58 billion for operating costs and Rs8 billion for contingencies.

According to the funding breakdown, Rs136.84 billion of the revised project cost will come through Foreign Project Assistance, while the Sindh government’s share stands at Rs47.79 billion.

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In dollar terms, foreign assistance amounts to $490.31 million, while the provincial government component is estimated at $170.69 million.

The Sindh government’s share includes utility relocation, direct contracting payments to the Frontier Works Organisation, provisional sums against claims, environmental and social mitigation measures, land acquisition, taxes and duties.

The sharp increase in the project’s cost highlights the financial pressures facing one of Karachi’s major mass-transit schemes as authorities work to complete the remaining infrastructure and operational components.

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