• Govt focusing on completion of ongoing projects of national importance, Senate panel told
• Fund’s ‘Diagnosis Report’ flags poor prioritisation, delays, cost overruns as major shortcomings
• NHA told to start M-6 work by October or face parliamentary action

ISLAMABAD: The government has restricted financing for new projects under the Public Sector Development Programme (PSDP) to just two per cent for the current year, in line with conditions of the ongoing Extended Fund Facility (EFF) of the International Monetary Fund (IMF).

This was disclosed by Planning and Development Secretary Awais Manzur Sumra while briefing the Senate Standing Committee on Planning and Development, which met under the chairmanship of Senator Quratulain Marri.

Mr Sumra said the IMF had demanded that new development projects be limited to 10pc of the PSDP to maintain fiscal discipline, given the already large and longstanding project portfolio.

Accordingly, the government decided to prioritise ongoing projects of national importance for early completion, allocating only 2pc of PSDP funds for new schemes in the current budget. He said 2,518 projects worth Rs344 billion were completed or closed down in this process.

The secretary informed the committee that the IMF had also sent a questionnaire covering multiple areas, including Public-Private Partnerships (PPPs) and Public Investment Management (PIM), which were directly linked to the Planning Commission. Pakistan submitted the completed questionnaire on March 20, 2025.

While discussing the IMF’s Diagnosis Report, it was revealed that the lender had pointed out weak project prioritisation, frequent delays, cost overruns, and inadequate protection of funds for approved projects as major shortcomings. The committee chair stressed that, in line with its earlier recommendations, ongoing projects should be completed before new ones are taken up.

On the panel’s previous recommendations, Mr Sumra said the standing committee had made 22 proposals, some of which had been implemented while others remained under consideration. The committee demanded a detailed compliance report on projects recommended by senators, but the ministry sought more time. The chair directed that the relevant ministries be called to the next meeting to present their reports.

Mr Sumra also briefed the committee on the Intelligent Project Automation System (iPAS), designed to streamline development processes by integrating systems, improving budget detail, and automating budget releases.

Two major projects

The National Highway Authority (NHA) presented updates on two major projects — the Sukkur-Hyderabad-Karachi Motorway (M-6) and Karachi-Quetta-Chaman Road (N-25).

The committee members were informed that the M-6 comprises five sections between Hyderabad and Sukkur. In the first phase, the Noushehroferoz-Ranipur and Ranipur-Sukkur sections were being prioritised, with formal approvals expected in September 2025.

The committee was told that the Islamic Development Bank would fund two sections of M-6, while negotiations with the Saudi Development Fund and Opec Fund for International Development were underway. A delegation from the Saudi Development Fund is scheduled to visit Pakistan in October.

On the Karachi-Hyderabad (M-10) Motorway, the committee was informed that the six-lane, 168km-long project had a preliminary estimated cost of Rs254bn, with final estimates to be determined after detailed design and commercial feasibility. It will be included in next year’s PSDP.

The committee chairperson expressed strong concern over NHA’s performance on the M-6 project, noting that the authority had already lost four months and was now seeking another four to finalise decisions under the PPP model. She directed the NHA to ensure work on the project begins by October 2025, warning that if the deadline was missed, the matter would be referred to the upper house of parliament for intervention.

She also instructed that the Economic Affairs Division and other relevant departments be called to the next meeting to brief the committee on measures for timely implementation.

Published in Dawn, August 30th, 2025