• Government focused on the completion of projects ongoing national importance, said the Senate Panel
• The ‘Diagnostic Report’ of Fund indicates poor prioritization, delays and excess costs such as important deficiencies
• NHA told him to start the work M-6 in October or face parliamentary action
Islamabad: The Government has restricted financing for new projects under the Public Sector Development Program (PSDP) only two percent for the current year, in line with the conditions of extended background ease (EFF) in progress of the International Monetary Fund (IMF).
This was revealed by the Secretary of Planning and Development, Awais Manzur Sumra, while informing the Permanent Planning and Development Committee of the Senate, which met under the presidency of Senator Quratulain Marri.
Sumra said that the IMF had demanded that the new development projects be limited to 10 percent of the PSDP to maintain fiscal discipline, given the portfolio of projects already large and long.
Consequently, the Government decided to prioritize continuous projects of national importance for early completion, assigning only 2 % of PSDP funds for new schemes in the current budget. He said that 2,518 projects were completed or closed worth RS344 billion in this process.
The secretary informed the committee that the IMF had also sent a questionnaire that covered multiple areas, including public-private partnerships (PPP) and public investment management (PIM), which were directly linked to the Planning Commission. Pakistan presented the questionnaire completed on March 20, 2025.
While arguing the IMF diagnostic report, it was revealed that the lender had indicated the weak prioritization of the project, frequent delays, excesses of costs and inadequate protection of funds for approved projects as important deficiencies. The president of the committee emphasized that, in line with their previous recommendations, the ongoing projects must be completed before new ones are taken.
According to the previous recommendations of the panel, Sumra said that the Permanent Committee had made 22 proposals, some of which had been implemented, while others remained in consideration. The Committee demanded a detailed compliance report on the projects recommended by the senators, but the ministry sought more time. The president ordered that the relevant ministries were called to the next meeting to submit their reports.
Mr. Sumra also informed the Committee on the Intelligent Project Automation System (IPA), designed to optimize development processes by integrating systems, improving budget details and automating budget releases.
Two important projects
The National Highway Authority (NHA) presented updates on two important projects: the Sukkur-Hyderabad-Karachi (M-6) and Karachi-Quetta-Chaman Road highway (N-25).
The members of the committee were informed that the M-6 includes five sections between Hyderabad and Sukkur. In the first phase, the Noushehrofero-Ranipur and Ranipur-Sukkur sections were being prioritized, and formal approvals were expected in September 2025.
The Committee was told that the Islamic Development Bank would finance two M-6 sections, while negotiations with the Saudi Development Fund and the OPEC fund for international development were underway. A delegation of the Saudi Development Fund is scheduled to visit Pakistan in October.
On the Karachi-Hyderabad highway (M-10), the committee was informed that the six-lane project and 168 km long had an estimated preliminary cost of RS254b, with final estimates that will be determined after a detailed design and commercial viability. It will be included in the PSDP next year.
The president of the committee expressed a strong concern for NHA’s performance in the M-6 project, noting that the authority had already lost four months and now was looking for another four to finish the decisions under the PPP model. He directed the NHA to guarantee that the work in the project begins in October 2025, warning that if the deadline was lost, the matter would be sent to the upper house of the Parliament for the intervention.
He also instructed that the Division of Economic Affairs and other relevant departments are called to the next meeting to inform the Committee of Measures for Timely Implementation.
Posted in Dawn, August 30, 2025
