Karachi: The Sindh cabinet has approved a 40% increase in the cost of a dedicated water pipeline project to supply water to Defence Housing Authority (DHA) from Dumlottee on the outskirts of Karachi.
The cabinet had approved the Rs10.56 billion project in July 2025 to address water shortages in DHA, where residents have largely relied on water tankers.
The project’s engineering, procurement and construction (EPC) cost has now been revised to Rs14.237 billion. The pipeline will be laid by the Frontier Works Organisation (FWO).
Senior Minister Sharjeel Inam Memon said the increase was due to changes in the engineering design and pipeline material, higher taxes and inflation, as well as the addition of filtration facilities, a monitoring system and other project requirements.
The cabinet also approved the appointment of a consultant under the relevant procurement law and increased the bulk water tariff from Rs0.60 to Rs0.70 per gallon.
According to the revised financial model, the project is expected to generate net savings of around Rs2.31 billion over the next 10 years.
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