Imran Khan addresses the media during his visit to Karachi on Saturday.

Pakistan Prime Minister Imran Khan on Saturday unveiled a "historic" financial package worth Rs1.1 trillion for Karachi's transformation that he said will address the chronic municipal and infrastructure issues of the country's financial hub.

Residents carry salvaged belongings as they wade through a flooded area during a heavy rain in Karachi. AP

The city's drainage and sewerage issues were brought into national focus last month after record-breaking monsoon rains caused widespread devastation and left dozens dead.

Addressing a press conference in Karachi alongside Sindh Chief Minister Murad Ali Shah and Governor Imran Ismail after chairing a meeting of the "Karachi committee," the premier said the federal and Sindh governments had decided to deal with Karachi's problems "together" following negotiations.

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Noting that floods caused by heavy rains have hit not only Karachi but Balochistan, interior Sindh, Swat, and his own constituency of Mianwali, Imran said it was decided in view of unprecedented rains that all of Karachi's issues would be tackled at once, and negotiations were subsequently held.

"I would have come (to Karachi) sooner but we had to make a structure," he said, revealing that the transformation plan would be implemented through the Provincial Coordination Implementation Committee (PCIC) under the chief minister.

He said all stakeholders will be involved in its implementation. "The army will play a big role," he added, noting that the army helps the civilian administration whenever there are floods or a calamity.

"The package we have brought for Karachi is historic," Imran said, adding that the federal and provincial governments were both contributing to the Rs1,100 billion package.

Children swim in a flooded street after heavy rain in Karachi. AFP

The first problem the plan will address is of water supply and the Centre and Sindh government will each work on a part of the Greater Karachi Water Supply Scheme, also called K-IV. "Our effort is to permanently solve Karachi's water problem in three years," the premier said.

He said the second problem is of encroachments on nullahs on which the National Disaster Management Authority (NDMA) has already started work.

"The people who will be displaced [during the anti-encroachment drive] are the poorest so the Sindh government has taken responsibility for resettling them; federal government will obviously remove encroachments," he added.

The third and fourth issues that the plan will focus on are concern the city's sewerage system and solid waste disposal. "We will make a proper system," Imran said.

Vehicles wade through a flooded road after heavy rain in Karachi. AFP

"There is also the problem of transport. We will also complete the KCR (Karachi Circular Railway) in this package. Then roads [will be built for] BRT (Bus Rapid Transit) and other lines. We have decided to completely solve the issue of transportation and roads," he told the presser.

The premier said the Centre and Sindh had decided to solve Karachi's problems together "once and for all" through the coordination committee as residents of Karachi "have had to go through a hard time." But he acknowledged things were not all easy.

"There were different jurisdictions in different areas so implementation was difficult," he said. "That is why we have formed PCIC so all stakeholders are in one place.

"I am very hopeful that the betterment to come out of the hard times that Karachi's people have faced is that these problems will be solved."

People push an oil tanker after heavy rain in Karachi. AFP

The prime minister noted that there has been widespread destruction in the interior areas. "We will sit [with the Sindh government] and discuss how to help," he said, adding that there are high floods in Swat and Chitral too.

Imran said God had "put us through test before floods in the form of corona."

"A big reason for our success [in fighting coronavirus] was that we made a national coordination committee. We made a committee very quickly and it met daily, [there was] total coordination among the provinces and our decisions then were better.

Imran arrived in Karachi earlier on Saturday for a day-long visit to announce the financial package for the implementation of a transformation plan meant to address the city's issues and developmental requirements.