The cost of the Lyari Freight Corridor C in Karachi has skyrocketed to $1.085 billion, nearly four times the original estimate of $288 million. The National Assembly’s Standing Committee on Economic Affairs expressed deep concern over the sharp increase during a meeting on Thursday.
Chaired by Mirza Ikhtiar Baig, the committee was briefed on the project’s three-phase plan. The first phase, covering 9.2 km, will connect the ICI Interchange to M-10. The second phase spans 6 km from Sohrab Goth to M-9, while the third phase, 13.3 km, will join the two sections. Officials said Exim Bank will finance 80% of the first phase, with Karachi Port Trust covering the remainder.
Baig described the cost surge as “shocking” and announced that the next committee meeting will take place in Karachi to investigate the escalation further. Committee member Javed Hanif Khan stressed that construction should begin immediately due to frequent road accidents in the city.
The committee also discussed broader infrastructure projects, including the M-6 Motorway. Funding arrangements were highlighted, with $475 million approved by the Islamic Development Bank for sections four and five. Talks continue with the OPEC Fund and Saudi Fund for Development for additional financing. Construction of the 306-kilometer motorway, featuring 15 interchanges and 10 service areas, is scheduled to start soon, with completion expected by 2028.
Chairman Baig raised concerns over rising interest rates on project loans, now exceeding 6%, calling for careful monitoring. Officials confirmed that the terms follow standard Islamic Development Bank financing with a 20-year repayment plan and a five-year grace period.
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The committee also reviewed post-flood assessments, noting 229,000 houses and over 22,000 livestock destroyed nationwide. Officials reported 1,037 deaths and emphasized the need to address illegal riverbank construction.
The Lyari Freight Corridor C remains a priority infrastructure project, and authorities were directed to submit detailed reports at the next Karachi-based committee session.
