A dozen projects totaling Rs600 billion were approved on Friday by Pakistan’s highest project regulatory agency, which has been marred by years of poor project management. The forum had already given its approval to several of these plans, but updated cost estimates were still pending.
In his first meeting as chair of the Executive Committee of the National Economic Council (Ecnec), Finance Minister Ishaq Dar approved 12 projects and revised their estimated costs. According to a press release from the Ministry of Finance following the meeting, the total cost of these schemes is Rs600 billion, which includes seven projects that were up for cost estimate revisions. These programs are said to be more expensive overall than what is anticipated to be spent on development during the current fiscal year.
The government had previously taken Rs23 billion away from 72 active projects to fund initiatives that weren’t included in the initial yearly plan. The committee also approved a 500 KV Sialkot Substation project for the Ministry of Energy (Power Division), funded by the French Development Agency (AFD), with a total estimated cost of Rs31.8 billion. The committee agreed to review the project in three months based on the dollar exchange rate, according to the finance ministry. The project had initially received approval with a cost estimate of Rs 25 billion, but adjustments were required because of currency rate fluctuations.
In order to alleviate NTDC system restrictions, Ecnec also approved the addition of 500 KV and 220 KV transformers at the existing grid stations for Rs15.1 billion. Due to changes in the dollar exchange rate, this expense was also up for assessment in the following three months. The anticipated cost of this project was previously approved at Rs11.7 billion. The committee also approved the initiative to upgrade the current 220 kV Vehari substation to a 500 kV Vehari substation.
The $17.1 billion project cost is subject to review in the following three months based on the dollar exchange rate. The estimated completion date for this project, which is also sponsored by AFD, is 41 months. The initial approval of this program came with a cost estimate of Rs. 13 billion. The Chasma Right Bank Canal Project, which would be built at a cost of Rs189.6 billion with funding provided by the federal and provincial governments, was also given approval by the committee.
Khyber-Pakhtunkhwa’s government will contribute 35%, and the federal government will provide 65%. The proposed canal is an offshoot of the Chasma hydropower station’s Head Race channel, which is located on the right side of the Chasma barrage. In addition to this, the Naulong Multipurpose Dam Project has received permission at a revised cost of Rs43.8 billion, a 266% increase over the original cost of less than Rs12 billion. Although the project will aid in flood prevention, its completion has been postponed due to a lack of funding and poor planning.
The Higher Education Commission’s (HEC) Allama Muhammad Iqbal Scholarship for Afghan National Students, which would provide 4500 scholarships at a cost of Rs12.7 billion, was approved by the Ecnec in the education sector. The project’s goal was to develop the skills of talented and qualified workers in order to fill the gap in the availability of trained labor and enhance Afghanistan’s socioeconomic situation. Additionally, it should contribute to improving ties with the neighboring nation.
The Dualization and Rehabilitation of the KarachiQuetta-Chaman Road (N-25) from Karachi-Kararo and WadhKhuzdar is another project that Ecnec authorized, and it will cost Rs74.7 billion. This effort is crucial to saving the lives of hundreds of workers who use deteriorated roadways every day. Additionally approved was the dualization of the KaraoWadh part of the national highway, which will cost 67.7 billion and take 18 months to finish. The timelines could be challenging to follow because of a lack of resources and the inclusion of new projects.
The council also gave its approval to the improvement of the Chitral– Booni–Mastuj–Shandur road at the cost of Rs17.8 billion. The revised cost of Rs28 billion for the Lowari road tunnel and access roads project was also approved. Originally, this project was approved at the cost of Rs8 billion, which is now more than double. In yet another case of wastage of resources and unduly adding up external debt, Ecnec approved the Locust Emergency and Food Security project at an updated cost of Rs26 billion, including the World Bank loan of Rs22 billion.
The project was created to purchase high-end computers and vehicles in the name of the farmers, although it was originally designed roughly three years prior, during the country’s severe locust attack. The project’s goals include strengthening the nation’s ability to defend against future locust attacks, the capability of the Federal and Provincial Plant Protection Departments, and the national information and management system for food security. The Punjab Resilient and Inclusive Agriculture Transformation (PRIAT) project, with a total cost of Rs. 74.8 billion, including the Rs. 45.9 billion World Bank loan, was also authorized by the committee.
