Islamabad:
In unprecedented development, the federal government approved Thursday 27 projects worth more than 1.5 Billion of rupees in a few hours, without too much exam. Most projects were linked to Sindh and Balutchistan.
The keys include the Sukkur-Hyderabad highway, the reconstruction of a national highway in the Sindh and the improvements in the dangerous N-25 road in Balutchistan. Several Sindh-oriented projects have also been approved, despite them violating the national tax pact signed as part of the International Monetary Fund (IMF) program.
The Executive Committee of the National Economic Council (ECNEC), chaired by Vice-Prime Minister Ishaq Dar, approved 28 projects covering energy, infrastructure, education, health, the environment and the public service at the federal and provincial levels, according to an announcement from the DAR office.
Officials of the Ministry of Planning later said that 27 projects had been approved, while the Sehat Sahut Card Program was referred to a committee.
DAR has reaffirmed government’s commitment to inclusive and sustainable growth, institutional reforms and long -term economic stability.
However, the Ecnec meeting lasted barely two hours and approved RS1.5 Billion of projects. Thirteen additional articles, mainly linked to the regimes supported by Pakistan Peoples’ Party (PPP) in the Sindh and road works in Balutchistan, were also authorized.
The federal government has approved the construction of the Sukkur-Hyderabad (M-6) motorway at the cost of 363 billion rupees, confirmed the Minister of Planning Ahsan Iqbal. A Chinese company would have proposed to build the five sections of the highway.
While the Islamic Development Bank is funding two sections, the government can authorize Chinese companies to undertake the entire construction.
This is the fourth time that the project has been approved after the failure of the public-private partnership model (PPP).
Initially approved in 2020 to Rs165 billion, the cost of the project was revised at Rs191 billion in 2021, then to 308 billion rupees in 2022. Current approval to RS363 billion points, an increase of 121% compared to the initial cost. The project is now part of the public sector development program (PSDP).
The Hyderabad-Sukkur motorway is the only missing North-South connection and is an absolute priority for the PPP, which has equaled its budgetary support to the inclusion of this project in the PSDP.
The Ecnec also approved half a dozen Sindh government projects, funded by 86 billion rupees from federal resources, another result of the budgetary negotiations of PPP-Pakistan Muslim League-Nawaz (PML-N).
Three sections of Karachi-Cquerta-Chaman “Killer Road”, the N-25 or Balutchistan motorway, were approved at a total cost of 415 billion rupees. The dualization of the 278 km section between Karachi and Quetta will cost 183.4 billion rupees over three years, with 33 billion rupees allocated to exercise 26.
Another 332 km section, Khuzdar in Kuchlak, will cost 99 billion rupees, with 34 billion rupees allocated this year. The Karoro Wadh and Khuzdar-Chaman (104 km) sections were approved for 1333 billion rupees, with 33 billion rupees allocated for the current exercise.
The Green Pakistan program has been increased to RS122.2 billion, focusing on forest restoration, biodiversity and unleashed forest markets. Punjab is expected to receive 32 billion rupees and Khyber-Pakhtunkhwa (KP) RS28 billion in the program.
The 16 MW Naltar hydroelectric project was approved at 10.6 billion rupees. A flood management project of 17 billion rupees in the Kachhi plains of Balutchistan was also approved.
The Punjab Tourism for Economic Growth project was authorized to RS12.2 billion. The higher education development program was approved for 21.2 billion rupees.
The Prime Minister for Education’s Pakistani fund has received 14 billion rupees, while the Punjab CM Maryam Nawaz laptop program has obtained 27 billion rupees.
A project to duplicate the Sargodha road to Mianwali via Khushab was approved at Rs12 billion, the federal government covering 25% of the cost, in violation of the conditions of the IMF.
The latechs colony lashore sewer system in Gulshan-E-Ravi was approved at 49.3 billion rupees. A separate RS12 billion project was erased for a controlled access corridor between Niazi and Babu Sabu exchanges, to be entirely funded by Punjab.
The Balutchistan security and productivity improvement project has been approved at 10 billion rupees.
A road from Gujranwala to the M-2 exchanger via Hafizabad was approved for 13.2 billion rupees. The federal government will contribute to 3.7 billion rupees or 28.2%, in violation of the national tax pact.
Rehabilitation and upgrade of the Jhalja-Bela road were approved for 16.2 billion rupees.
A revised project of 41 billion rupees within the framework of the Pakistan income program was also approved. Funded by a loan of $ 400 million in the World Bank in 2019, it aims to stimulate income collection and extend the tax base but remains incomplete after six years.
The Bloodhar route to the national motorway will be rebuilt for 37 billion rupees, also funded by federal governments and Sindh.
The upgrade of the Rohri-Guddu dam path, covering the M-5 Sadiqabad exchanger to Khanpur Mahar, Mirpur Mathelo and Mureed Shah, was approved at 18 billion rupees.
The Sindh Coastal Highway project was authorized at a revised cost of RS37.7 billion, the federal government contributing to 27 billion rupees and Sindh 10.8 billion rupees via its annual development program. The duetization of the Nawabshah Mehran motorway in Ranipur (135 km) was approved at a revised cost of 41 billion rupees.
Finally, the reconstruction of the National Highway N-5 as part of the resilient takeover and reconstruction framework was approved at 165 billion rupees ($ 588 million). The Asian Infrastructure Investment Bank (AIIB) provides $ 500 million, or 85% of the total cost.
