Islamabad:
In an unprecedented development, the Federal Government approved on Thursday 27 projects worth RS1.5 billion in just a few hours, without much scrutiny. Most of the projects were related to Sindh and Baluchistan.
The key schemes include the Autopist Sukkur-Hyderabad, the reconstruction of a national highway in Sindh and improvements to the dangerous N-25 road in Baluchistan. Several projects focused on Sindh were also approved, although they violated the National Fiscal Pact signed under the International Monetary Fund (IMF) program.
The Executive Committee of the National Economic Council (ECNEC), chaired by the Deputy Prime Minister Ishaq Dar, approved 28 projects that cover energy, infrastructure, education, health, environment and public service at both federal and provincial level, according to an announcement of the DAR office.
The officials of the Ministry of Planning clarified that 27 projects were approved, while the Sehat Sahulat card scheme was sent to a committee.
Give reaffirmed the government’s commitment to inclusive and sustainable growth, institutional reforms and long -term economic stability.
However, the ECNEC meeting lasted just two hours and approved projects worth RS1.5 billion. Thirteen additional articles were also clear, mostly linked to the schemes supported by the people of Pakistan (PPP) in Sindh and the road works in Baluchistan.
The Federal Government approved the construction of the Sukkur-Hyderabad highway (M-6) at a cost of RS363 billion, confirmed the Minister of Planning, Ahsan Iqbal. According to reports, a Chinese company has offered to build the five sections of the highway.
While the Islamic Development Bank is financing two sections, the Government may allow Chinese companies to undertake all construction.
This is the fourth time that the project has been approved after previous attempts under the public-private partnership model (PPP).
Initially approved in 2020 to RS165 billion, the cost of the project was reviewed at RS191 billion in 2021, then at RS308 billion in 2022. The current approval of RS363 billion marks an increase of 121% compared to the original cost. The project is now part of the public sector development program (PSDP).
The Hyderabad-Sukkur highway is the only missing North-South road link and is a priority for the PPP, which linked its budget support for the inclusion of this project in the PSDP.
The ECNEC also approved half a dozen government projects of Sindh, financed by RS86 billion federal resources, another result of the budgetary negotiations of the Nawaz PPP-Pakistan Muslim League (PML-N).
Three sections of the “Killer road” of Karachi-Quetta-Chaman, the N-25 or Baluchistan highway, were approved at a total cost of RS415 billion. The duration of the 278 km section between Karachi and Quetta will cost RS183.4 billion for three years, with RS33 billion assigned for the FY26.
Another section of 332 km, Khuzdar to Kuchlak, will cost RS99 billion, with RS34 billion assigned this year. The Karoro Wadh and Khuzdar-Chaman (104 km) sections were approved by RS133 billion, with RS33 billion assigned for the current fiscal year.
The Pakistan green program was reduced to RS122.2 billion, focusing on forest restoration, biodiversity and non -wood forest markets. Punjab will receive RS32 billion and Khyber-Pakhtunkhwa (KP) RS28 billion of the program.
The 16MW Hydropower Naltar project was approved at RS10.6 billion. An RS17 billion flood management project was also approved in the Kachhi plains of Baluchistan.
The Punjab economic growth project was eliminated at RS12.2 billion. The Higher Education Development Program was approved by RS21.2 billion.
The Prime Minister’s Education Fund in Pakistan received RS14 billion, while the Punjab Maryam Nawaz Punjab Punctop program obtained RS27 billion.
A road duration project was approved from Sargodha to Mianwali through Khushab in RS12 billion, and the federal government covered 25% of the cost, in breach of the IMF conditions.
Lahore’s sewerage system from the Larechs colony to Gulshan-E-Ravi was approved at RS49.3 billion. A separate project of RS12 billion was authorized for a controlled access corridor between the exchanges of Niazi and Babu Sabu, to be completely financed by Punjab.
The Baluchistan Water and Productivity Security Improvement Project was approved at RS10 billion.
A path from Gujranwala was approved to the M-2 exchange through Hafizabad for RS13.2 billion. The Federal Government will contribute with RS3.7 billion or 28.2%, in violation of the National Fiscal Pact.
The rehabilitation and improvement of the Jhalja-Bela road were approved by RS16.2 billion.
A reviewed project of RS41 billion was also approved under the Pakistan increase revenue program. Financed by a world bank loan of $ 400 million in 2019, it aims to boost income collection and expand the tax base, but remains incomplete after six years.
The road from Sanghar to the National Highway will be rebuilt for RS37 billion, equally financed by federal governments and Sindh.
The update of Rohri-Guddu Barge Road, which covers the M-5 Sadiqabad exchange to Khanpur Mahaha, Mirpur Mathelo and Mureed Shah, was approved at RS18 billion.
The Coast of Sindh project was authorized at a revised cost of RS37.7 billion, and the federal government contributed RS27 billion and Sindh RS10.8 billion through its annual development program. The duration of Mehran Highway from Nawabshah to Ranipur (135 km) was approved at a revised cost of RS41 billion.
Finally, the reconstruction of the N-5 National Highway under the framework of resistant recovery and reconstruction was approved at RS165 billion ($ 588 million). The Asian Infrastructure Investment Bank (AIIB) is providing $ 500 million, which is 85% of the total cost.
