43pc foreign-funded projects found to be ‘problematic’

Published June 24, 2022
Minister for Economic Affairs Sardar Ayaz Sadiq chairs the third follow up meeting of the National Coordination Committee on Foreign Funded Projects to review foreign funded federal energy sector projects on Thursday. — Photo courtesy Ministry of Economic Affairs Twitter
Minister for Economic Affairs Sardar Ayaz Sadiq chairs the third follow up meeting of the National Coordination Committee on Foreign Funded Projects to review foreign funded federal energy sector projects on Thursday. — Photo courtesy Ministry of Economic Affairs Twitter

ISLAMABAD: The Ministry of Economic Affairs said on Thursday that 43 per cent of about $35 billion worth of foreign-funded projects were problematic — either not progressing well or unable to deliver the desired outcomes.

At a review meeting of the National Coordination Committee on foreign-funded projects, the ministry reported that it was managing an ongoing portfolio of $34.8bn such projects of various sectors of the economy. “Out of the total portfolio, $15bn (43pc) is considered as problematic,” it added.

On top of that, the meeting was informed that the “share of federal energy projects is about $3.3bn, of which $2.3bn (or almost 70pc) is rated as problematic”, an official statement said.

No wonder then, the energy sector is emerging as a challenge to the country’s stability, an official said, referring to over 17pc losses and 10pc short recoveries in the power sector and 10-17pc system losses in the gas sector.

Minister for Economic Affairs Sardar Ayaz Sadiq presided over the meeting which was also attended by the relevant ministers and representatives of provincial governments, besides the heads of implementing agencies.

The minister deplored the prevailing situation of energy sector projects given their importance and impact on overall economy and the public at large. He said energy was arguably one of the most important inputs for economic growth to sustain industrial and commercial activities, but it was emerging as a challenge.

The minister stressed the need for addressing the issue of problematic projects on an urgent basis, especially those facing chronic delays so as to pace up disbursements and progress.

The meeting decided to set milestones and deliverables with timelines by the focal ministries and implementing agencies for better monitoring and preventing time and cost overruns.

Economic Affairs Secretary Mian Asad Hayauddin proposed regular follow-up monthly meetings by the focal ministries with executing agencies and stakeholders for due monitoring and prompt resolution of issues.

Published in Dawn, June 24th, 2022

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Defining extremism
Updated 18 Mar, 2024

Defining extremism

Redefining extremism may well be the first step to clamping down on advocacy for Palestine.
Climate in focus
18 Mar, 2024

Climate in focus

IN a welcome order by the Supreme Court, the new government has been tasked with providing a report on actions taken...
Growing rabies concern
18 Mar, 2024

Growing rabies concern

DOG-BITE is an old problem in Pakistan. Amid a surfeit of public health challenges, rabies now seems poised to ...
Provincial share
Updated 17 Mar, 2024

Provincial share

PPP has aptly advised Centre to worry about improving its tax collection rather than eying provinces’ share of tax revenues.
X-communication
17 Mar, 2024

X-communication

IT has now been a month since Pakistani authorities decided that the country must be cut off from one of the...
Stateless humanity
17 Mar, 2024

Stateless humanity

THE endless hostility between India and Pakistan has reduced prisoners to mere statistics. Although the two ...