KARACHI: Despite securing a Rs342 billion loan from the World Bank, the Karachi Water and Sewerage Services Improvement Project (KWSSIP) has fallen far short of its promises. More than five years into its implementation, the project has failed to upgrade key informal settlements, modernize Karachi’s crumbling water infrastructure, or ensure transparency in its operations.
Far from the intended transformation, insiders paint a picture of administrative dysfunction, alleged financial misconduct, and entrenched internal power struggles-while the residents of Karachi, particularly in slum areas, continue to live without basic water and sanitation services.
Promises Unfulfilled: Launched with the promise of improving water supply, drainage systems, and civic amenities in Karachi’s underserved neighborhoods-such as Isa Nagri and Shanti Nagar-KWSSIP was also tasked with upgrading roads, street lighting, and public parks. However, site visits and interviews with residents confirm that the project’s footprint remains virtually invisible on the ground.
A critical precondition of the World Bank loan was a comprehensive mapping and survey of the city’s katchi abadis, goths, and tax-evading zones. Despite the availability of funds and the urgency of the task, this exercise has not been carried out.
Key components of the city’s century-old sewerage network-much of which lies damaged or buried-remain untouched. Institutional reforms within the water utility, including human resource upgrades, digital service platforms, and departmental coordination, also remain in abeyance.
Inside the KWSSIP Nexus
Beyond administrative inertia, sources point to a network of influence operating within KWSSIP-one that many insiders claim has compromised the project’s integrity.
At the centre of the controversy is Asif Ali Khan, an electronics engineer by education, with no formal background in civil or environmental engineering. Despite this, he is reported to have played an outsized role in decision-making across project planning, procurement, and implementation.
Multiple sources within KWSSIP allege that Khan functions through a parallel power structure, enjoying a level of authority disproportionate to his role or qualifications. His influence reportedly spans multiple departments, raising concerns about conflict of interest and procedural violations.
“Even senior officers are reluctant to challenge decisions if they bear his backing,” said one insider on condition of anonymity. “He travels frequently on foreign tours at project expense, and his decisions rarely face internal audit or review.”
Khan is not alone. Procurement officer Bilal Zafar stands accused of siphoning millions through contracts linked to IT infrastructure and social media services. Several of these contracts, insiders allege, involved inflated prices and substandard service delivery.
Meanwhile, Director of Investments Shakeel Qureshi is also under scrutiny. Documents reviewed revealed his signature on a series of questionable procurement bills, some involving inflated quotations and dubious vendors.
Former officials, who attempted to confront this internal nexus were allegedly sidelined or transferred. “There is a pattern,” a transferred engineer said. “Anyone who refuses to play along is removed. Even the current CEO/ MD lacks the authority to execute transfers without approval from this group.”
Multiple officials allege that these individuals are being protected by higher authorities within the provincial administration, further shielding them from accountability.
Public Shut Out, Media Gagged: In a worrying turn, KWSSIP has restricted access to its offices, barring journalists and civil society actors from conducting independent assessments or investigations. The media blackout, insiders suggest, is intended to limit public scrutiny over financial and administrative irregularities.
Earlier project audits had flagged cases where quotations for minor items-like office supplies-were inflated to several hundred thousand rupees. Similarly, the procurement of bulk water meters has also raised eyebrows, with allegations of non-competitive bidding and irregular invoicing.
Even as essential initiatives such as the K-IV water supply scheme and industrial sewage treatment plants remain delayed, KWSSIP has reportedly invested heavily in office refurbishments, luxury vehicles, and frequent international travel for senior staff.
A number of officials also allege that project funds were used for personal renovations and repeated purchases-including suspiciously frequent tyre replacements for private vehicles and refurbishment of their private residences, under project accounts.
World Bank Concerned, Karachites Burdened: To date, nearly Rs140 billion-over 40% of the total loan-has been disbursed. Yet, the impact on Karachi’s water and sewerage network remains negligible. Meanwhile, the city’s population of over 35 million faces the long-term consequences: the loan must be repaid over four decades through public taxation.
Growing unease within the World Bank’s local and regional offices has reportedly prompted quiet reviews. However, no formal pause or reallocation has been announced.
A Call for Forensic Review: Civic bodies, KWSC engineers, and a growing number of civil society actors are now calling for a full-scale forensic audit of the project. They demand not only financial transparency but a review of key appointments-particularly individuals wielding influence despite lacking relevant expertise or procedural mandate.
Some KWSC engineers have called for a reshuffling of the existing project setup, claiming that only a full overhaul would bring transparency and revive progress. “Once the current setup is disbanded, many more irregularities will come to light,” some senior officials of KWSC predicted.
Unless systemic reforms are initiated-and enforced-Karachi risks carrying the burden of a massive international loan while remaining trapped in the very conditions the KWSSIP was supposed to resolve.
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