ECNEC approves Rs1.5tr for 27 projects

ISLAMABAD:

In an unprecedented development, the federal government on Thursday approved 27 projects worth over Rs1.5 trillion in just a few hours, without much scrutiny. Most projects were related to Sindh and Balochistan.

Key schemes include the Sukkur-Hyderabad Motorway, the reconstruction of a National Highway in Sindh, and upgrades to the dangerous N-25 road in Balochistan. Several Sindh-focused projects were also approved, despite these violating the National Fiscal Pact signed under the International Monetary Fund (IMF) programme.

The Executive Committee of the National Economic Council (ECNEC), chaired by Deputy Prime Minister Ishaq Dar, approved 28 projects spanning energy, infrastructure, education, health, environment, and public service across both federal and provincial levels, according to an announcement from Dar's office.

Planning ministry officials later clarified that 27 projects were approved, while the Sehat Sahulat Card scheme was referred to a committee.

Dar reaffirmed the government's commitment to inclusive, sustainable growth, institutional reforms, and long-term economic stability.

However, the ECNEC meeting lasted barely two hours and approved Rs1.5 trillion worth of projects. Thirteen additional items, mostly linked to Pakistan Peoples' Party (PPP)-backed schemes in Sindh and road works in Balochistan, were also cleared.

The federal government approved the construction of the Sukkur-Hyderabad Motorway (M-6) at a cost of Rs363 billion, Planning Minister Ahsan Iqbal confirmed. A Chinese company has reportedly offered to build all five sections of the motorway.

While the Islamic Development Bank is funding two sections, the government may allow Chinese companies to undertake the entire construction.

This is the fourth time the project has been approved after previous attempts under the public-private partnership (PPP) model failed.

Initially approved in 2020 at Rs165 billion, the project cost was revised to Rs191 billion in 2021, then to Rs308 billion in 2022. The current approval at Rs363 billion marks a 121% increase from the original cost. The project is now part of the Public Sector Development Programme (PSDP).

The Hyderabad-Sukkur Motorway is the only missing north-south highway link and is a top priority for the PPP, which tied its budget support to inclusion of this project in the PSDP.

The ECNEC also approved half a dozen Sindh government projects, funded by Rs86 billion from federal resources, another result of the PPP-Pakistan Muslim League-Nawaz (PML-N) budget negotiations.

Three sections of the Karachi-Quetta-Chaman "killer road", the N-25 or Balochistan Expressway, were approved at a total cost of Rs415 billion. The dualisation of the 278km stretch between Karachi and Quetta will cost Rs183.4 billion over three years, with Rs33 billion allocated for FY26.

Another 332km stretch, Khuzdar to Kuchlak, will cost Rs99 billion, with Rs34 billion allocated this year. The Karoro Wadh and Khuzdar-Chaman sections (104km) were approved for Rs133 billion, with Rs33 billion allocated for the current fiscal year.

The Green Pakistan Programme was upscaled to Rs122.2 billion, focusing on forest restoration, biodiversity, and non-timber forest markets. Punjab is set to receive Rs32 billion and Khyber-Pakhtunkhwa (K-P) Rs28 billion from the programme.

The 16MW Naltar Hydropower Project was approved at Rs10.6 billion. A Rs17 billion flood management project in Balochistan's Kachhi Plains was also approved.

Punjab's Tourism for Economic Growth project was cleared at Rs12.2 billion. The Higher Education Development programme was approved for Rs21.2 billion.

The Prime Minister's Pakistan Fund for Education was given Rs14 billion, while Punjab CM Maryam Nawaz's Laptop Programme got Rs27 billion.

A road dualisation project from Sargodha to Mianwali via Khushab was approved at Rs12 billion, with the federal government covering 25% of the cost, in breach of IMF conditions.

Lahore's sewerage system from Larechs Colony to Gulshan-e-Ravi was approved at Rs49.3 billion. A separate Rs12 billion project was cleared for a controlled access corridor between Niazi and Babu Sabu Interchanges, to be fully funded by Punjab.

Balochistan's Water Security and Productivity Improvement Project was approved at Rs10 billion.

A road from Gujranwala to the M-2 Interchange via Hafizabad was approved for Rs13.2 billion. The federal government will contribute Rs3.7 billion or 28.2%, in violation of the National Fiscal Pact.

Rehabilitation and upgrading of the Jhaljao-Bela Road was approved for Rs16.2 billion.

A revised Rs41 billion project under the Pakistan Raises Revenue Programme was also approved. Funded by a $400 million World Bank loan in 2019, it aims to boost revenue collection and expand the tax base but remains incomplete after six years.

The road from Sanghar to the National Highway will be reconstructed for Rs37 billion, equally funded by the federal and Sindh governments.

The Rohri-Guddu Barrage road upgrade, covering M-5 Interchange Sadiqabad to Khanpur Mahar, Mirpur Mathelo and Mureed Shah, was approved at Rs18 billion.

The Sindh Coastal Highway project was cleared at a revised cost of Rs37.7 billion, with the federal government contributing Rs27 billion and Sindh Rs10.8 billion via its Annual Development Programme. The dualisation of Mehran Highway from Nawabshah to Ranipur (135km) was approved at a revised cost of Rs41 billion.

Lastly, the reconstruction of the National Highway N-5 under the Resilient Recovery and Reconstruction Framework was approved at Rs165 billion ($588 million). The Asian Infrastructure Investment Bank (AIIB) is providing $500 million, which is 85% of the total cost.