Reform activities delayed: WB rates KWSSIP’s progress as ‘fairly unsatisfactory’

ISLAMABAD: The World Bank has rated the overall implementation progress of the Karachi Water and Sewerage Services Improvement Project (KWSSIP) moderately unsatisfactory, saying that progress on many of the KWSSIP-supported reform activities remains delayed.

Official documents revealed that progress towards the achievement of the project development objective – to improve access to safe water services in Karachi and to increase KWSB’s financial and operational performance- has been rated moderately satisfactory. Further, of the USD 40 million committed loan, an amount of USD 30.71 million has been disbursed so far.

It further revealed that the KWSSIP-1 was recently restructured to extend the loan by one year through June 2026, allowing more time to complete the project’s investments and meet the development objectives.

World Bank annual meeting in Washington: Pakistan showcases FBR’s successful tax transformation

The Karachi Water and Sewerage Corporation (KWSC) is progressing towards providing clean drinking water with the support of the KWSSIP-1. So far, 29 chlorination stations have been commissioned to help improve water quality. An independent assessment will soon check the water quality downstream to confirm that it’s free from faecal coliforms — a group of bacteria whose presence signals that the water may be contaminated with harmful pathogens.

The KWSC’s financial performance is also improving. In fiscal year 2024–25, the KWSC increased its Operating Cost Coverage Ratio (OCCR)—which compares water supply revenues to operating costs—from 0.49 to 0.61.

The KWSC Board appointed a Chief Executive Officer, Chief Financial Officer, and Chief Information Technology Officer to lead reform efforts. However, progress on many of the KWSSIP-supported reform activities remains delayed, and some activities will be shifted to the follow-on project of KWSSIP-2.

Copyright Business Recorder, 2025