World Bank Approves $240 Million for Karachi’s Water and Sanitation Transformation

The World Bank has approved $240 million in funding for the Second Karachi Water and Sewerage Services Improvement Project (KWSSIP-2), aiming to revolutionize water, sanitation, and hygiene (WASH) services in Karachi. This critical initiative is expected to enhance access to safely managed WASH services across the city, contributing to improved public health and tackling the stunting crisis in Pakistan.

Najy Benhassine, the World Bank Country Director for Pakistan, emphasized the importance of WASH services in a statement, calling them fundamental to public health and quality of life. He noted that the project will focus on upgrading Karachi’s water treatment and distribution systems, wastewater treatment, sewer network rehabilitation, and bulk water augmentation. The initiative will benefit a broad demographic, with nearly half of all beneficiaries being women, 58% youth aged 15–24, and over half a million residents of informal settlements, also known as Katchi Abadis.

Building on the success of KWSSIP-1, this second phase will finance the expansion of Karachi’s water and sewerage infrastructure. The project is designed to improve water supply, sanitation services, and wastewater management, particularly in underserved areas. By 2030, it aims to ensure a safely managed water supply for nearly 16 million residents and sanitation services for 7.5 million people in Karachi.

The project’s long-term benefits are extensive. It is expected to reduce the costs associated with using alternative water sources, minimize the time spent on water collection, and decrease the prevalence of waterborne diseases. These outcomes will significantly improve the quality of life for Karachi’s residents.

A key component of KWSSIP-2 is its focus on addressing gender disparities within the Karachi Water and Sewerage Corporation (KWSC). Khairy Al-Jamal, the Task Team Leader for the project, highlighted plans for gender-inclusive recruitment to increase female representation in technical and leadership positions. The initiative will also support technical training programs for women, institutionalize internships for female graduates, and create pathways for career advancement within the utility.

KWSSIP-2 is part of the broader Pakistan Urban WASH Services Program, which the World Bank envisions will provide safely managed WASH services to 33.5 million people across Pakistan by 2035. The project aligns with a regional initiative by the World Bank aimed at delivering WASH services to approximately 100 million people in South Asia by the same year.

The ambitious KWSSIP-2 project will be co-financed by the Asian Infrastructure Investment Bank (AIIB), which is contributing an additional $240 million. Alongside this, the Pakistani government is committing $250 million, while an estimated $269 million will come from private sector and commercial financing.

This initiative underscores the World Bank’s commitment to addressing Karachi’s water and sanitation challenges, which are critical for the city’s economic growth and public health. With a strong focus on inclusive development and sustainability, KWSSIP-2 is poised to transform Karachi’s urban landscape and set a benchmark for similar projects in the region.