ISLAMABAD: The federal government on Monday approved three major infrastructure projects worth Rs100 billion for Khyber Pakhtunkhwa, where emergency and governor’s rule were imposed earlier this month.
The decisions were taken at a meeting of the Central Development Working Party (CDWP), chaired by Planning and Development Minister Ahsan Iqbal. The forum also cleared 11 other projects across the country, with an estimated investment of Rs126.5bn, including a mega project worth Rs85.34bn in Punjab.
In total, the forum considered 14 projects with an estimated cost of Rs226.48bn. Of these, 10 smaller projects worth Rs40.9bn were approved by the CDWP, while fou larger projects were recommended to the Executive Committee of the National Economic Council (Ecnec) for formal approval. Under the financial rules, the CDWP can approve projects costing up to Rs7.5bn, while larger projects are referred to Ecnec for approval.
The two mega water and agriculture projects, worth Rs69.9bn in KP and Rs85.34bn in Punjab, are also expected to unlock around $550 million in foreign financing from the Asian Development Bank (ADB).
“Federal government reaffirms commitment to KP’s development,” Mr Iqbal said, referring to the CDWP’s recommendation to Ecnec for approval of the Rs69.9bn irrigation project in KP, aimed at boosting agricultural productivity and rural livelihoods.
In the water resources sector, two major climate-resilient infrastructure projects were recommended to Ecnec for approval.
The first, the KP Resilient Irrigated Agriculture Livelihoods Development Project, is valued at Rs69.893bn. The ADB will contribute Rs56.133bn ($200 million), while the provincial government will provide Rs11.692bn, along with land acquisition. The project aims to rehabilitate the Pehur Main Canal, construct the Mulkhow Irrigation Distribution System and extend the Pehur High Level Canal.
The CDWP also recommended the Integrated Hill Torrent Management (Chachar–Mithawan) project in the districts of Dera Ghazi Khan and Rajanpur for Ecnec’s approval. The project is estimated to cost Rs85.342bn, with the ADB contributing Rs73.060bn ($260m) and the Punjab government providing Rs12.282bn.
The project aims to introduce modern spate irrigation systems, flood-protection channels, telemetry systems and centralised supervisory control and data acquisition (SCADA) monitoring to strengthen regional water security.
The meeting also cleared the Rs13.323bn Prime Minister’s Solar Scheme for Newly Merged Districts and referred it to Ecnec for approval. The initiative aims to provide off-grid solar energy solutions to households in the newly merged districts.
In the transport and communications sector, the CDWP recommended the Improvement and Widening of National Highway N-45, Section-I (Chakdara–Timergara), covering 39 kilometres, to Ecnec for approval at an estimated cost of Rs17.012bn.
To be financed through foreign funding from Exim Bank, the project will upgrade a key transport corridor linking Chakdara, Timergara, Dir and Chitral. It is expected to improve trade, road safety and tourism across the Kalash, Shandur and Kumrat valleys.
The CDWP itself approved 10 projects, including the construction of an eight-lane overhead bridge at the Imamia Colony Railway Crossing on National Highway N-5 in Shahdara, Lahore, at an estimated cost of Rs7.492bn. The project also includes the construction and rehabilitation of connecting roads to ease traffic congestion in Shahdara Town.
Published in Dawn, October 27th, 2026
