Pakistan's Central Development Working Party (CDWP) has given the green light to a batch of development schemes worth Rs253bn, but the headline decision carries a sobering reality: the cost of Karachi's critical K-IV water supply project has ballooned by nearly 1,000 per cent, with its promised capacity slashed by two-thirds. The approval on Thursday signals a commitment to the country's largest metropolis, yet it also exposes a 13-year saga of delays, financing gaps, and shrinking ambitions. Seven projects were cleared in total, with the bulk of the funding routed to the troubled water scheme and two other major initiatives. Main Developments The CDWP, chaired by Planning Minister Ahsan Iqbal, cleared seven projects with a combined estimated cost of Rs252.97bn. Four schemes worth Rs12.43bn received direct approval, while three larger projects totalling Rs240.53bn were referred to the Executive Committee of the National Economic Council (Ecnec) for final authorisation, as current rules cap CDWP's approval limit at Rs7.5bn per project. The K-IV project dominated the agenda, with its cost escalating to Rs172bn—a 975 per cent increase from the original estimate. The scheme, designed to carry water from Keenjhar Lake to Karachi through a 121km conveyance system, has seen its capacity reduced to 260 million gallons per day (MGD) from the initially planned 650MGD, and its completion pushed back to June next year. Read also: Why Pakistan's Services Exports Surge Signals a Shift Wapda Chairman Gen Muhammad Saeed told a parliamentary panel on Wednesday that financing problems caused the delays. The minister directed the Sindh government to submit a report on synchronising critical components, particularly the timelines for a 50MW power supply and distribution network augmentation needed for the project's operation. Background The K-IV project's origins date back to 2007, when it was finalised at an estimated cost of Rs15.8bn. In 2014, Ecnec revised the figure to Rs25.5bn after incorporating a 50MW power supply for pumping stations, along with bridges and tunnels for the conveyance system. Contracts for the current phase were awarded in June 2022 at Rs98.5bn, with an already-reduced carrying capacity of 260MGD. That phase was originally scheduled for completion by October 2023 under contract timelines, but the deadline has slipped repeatedly. The project has been framed as a lifeline for Karachi, with planners envisioning it as a long-term solution to the city's chronic water shortages, which have driven residents to rely on expensive private tankers. Beyond K-IV, the CDWP also referred the Rs37.13bn Pakistan Space Centre project to Ecnec. Sponsored by Suparco, the initiative aims to develop indigenous capability for satellite design, assembly, integration, testing, and qualification, reducing dependence on foreign facilities. A third referred project, the Rs31.59bn Lahore Water and Waste Water Management Project, includes twin three-km raw water pipelines, a 54 MGD surface water treatment plant, and a five-megawatt solar power system. Why It Matters The K-IV project's cost escalation and capacity reduction carry profound implications for Karachi's 20 million residents, who face acute water scarcity. Planning Minister Ahsan Iqbal emphasised the project's "far-reaching social and economic benefits," noting that the federal government's investment aims to supply safe, clean drinking water and reduce the financial burden on low-income households, specifically protecting them from the "tanker mafia." The approval signals that the federal government remains committed to the scheme despite its troubled history, but the 975 per cent cost overrun raises questions about project management and fiscal discipline. For the higher education sector, the approval of four projects worth Rs12.43bn—including the Women University of AJ&K Bagh, Emerson University Multan, an Institute of Technology in Hyderabad, and a veterinary sciences college in Narowal—reflects a continued push to expand academic infrastructure across the country. What's Next Ecnec will now review the three major projects, including K-IV, the space centre, and the Lahore water scheme. For the Lahore project, the forum directed the Punjab government to provide an undertaking ensuring annual funding through the provincial Annual Development Programme, a condition that could affect its approval timeline. On K-IV, the immediate priority is the synchronisation report from Sindh, which will determine whether the 50MW power supply and distribution network can be completed in time for the June next year deadline. The project's financing challenges, which Wapda has cited as the primary cause of delays, remain an open question that could influence whether the latest timeline holds.