Public welfare projects: PM directs third-party validation
He emphasized the importance of maintaining high standards in completed and near-completion projects through independent validation.
Chairing a review meeting regarding the development projects of the current fiscal year, the prime minister instructed that delayed projects must be completed as soon as possible.
PSDP: PM wants fund allocation to high impact projects
He said that the construction of high-quality educational centers like Danish Schools in Gilgit-Baltistan, Azad Jammu & Kashmir, and all provinces was a top priority of the government.
The prime minister added that educational institutions were a vital part of the current fiscal year's development plans, aimed at providing international-standard education and training to children from economically disadvantaged backgrounds, ensuring equal development opportunities.
He highlighted that water reservoirs were crucial for national integrity, and several projects were currently under construction to this end.
He noted that the establishment of technology parks in Karachi and Islamabad will make Pakistan a significant economic hub for information technology both in the region and globally.
He emphasized that the development of Special Economic Zones (SEZs) was a key component of the government's economic vision for the country.
During the meeting, the prime minister was briefed on the completed development projects as well as those currently underway in the current fiscal year.
The briefing informed that multiple projects across the country in sectors such as communications, IT, water reservoirs, electricity, educational institutions, and hospitals had been completed, and work on new projects was progressing rapidly.
The meeting was attended by Minister for Planning and Development Dr. Ahsan Iqbal, Minister for Economic Affairs Ahad Khan Cheema, Minister for Information and Broadcasting Attaullah Tarar, and senior officials from relevant institutions.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
2 days ago
- Business Recorder
Planning minister apprises World Bank official about India's ‘water weaponisation' designs
ISLAMABAD: Minister for Planning, Development and Special Initiatives Ahsan Iqbal called on the international community to ensure India adheres to the Indus Waters Treaty (IWT). He warned that water weaponisation and violations of the treaty could trigger global food and water crises, posing serious risks to regional stability, adding that such actions can imperil the world peace. The minister shared these views in a meeting with Vice President of the World Bank for the Middle East and North Africa Osman Dione, who called on him in Planning Ministry, Islamabad, on Friday. In the meeting, matters regarding strengthening the collaborative partnership between the World Bank and the Ministry of Planning came under discussion. The minister asserted that adopting an export-led growth model is indispensable for sustainable development. He reaffirmed Pakistan's ambition to increase exports from $32 billion to $100 billion, aiming to boost economic growth and sustainability. During the meeting, the World Bank vice president lauded Professor Ahsan Iqbal's significant contributions towards improving Pakistan's economy. He also highlighted the government's successful efforts in curbing inflation through tough policy measures, which have restored investor confidence and driven the Pakistan Stock Exchange beyond the 130,000-point mark. Professor Iqbal stressed the importance of revitalising the previously established partnership between the ministry and the World Bank to accelerate progress in national development projects. The minister noted that the global economy is transitioning from an industrial-based to a technology-driven model, underscoring the need for Pakistan to adapt accordingly. The minister further underscored the government's commitment to addressing child stunting issue, describing it as a serious national challenge requiring urgent and effective intervention. He added that education remains a priority, with rising enrollment rate of girls in higher education signalling positive progress. Professor Iqbal stressed the pivotal role of women in achieving development goals, affirming the ministry's commitment to fostering women's active participation in all socio-economic initiatives. Copyright Business Recorder, 2025
Business Recorder
2 days ago
- Business Recorder
PIDE holds seminar: Country's macro-economic indicators show signs of improvement
ISLAMABAD: Economists at a seminar while highlighting key economic challenges of Pakistan have said that the country's macroeconomic indicators have shown signs of improvement, such as declining inflation which is below five percent and a recent upgradation of credit rating by S&P from CCC+ to B-. Speaking at an event organised by Pakistan Institute of Development Economics (PIDE) here on Friday, they, however, emphasised the need to transition from mere stabilisation to robust growth to benefit the common people. The event brought together senior officials from the Ministry of Planning, Development and Special Initiatives, researchers, and economists to engage in a rigorous policy discussion. Speaking on the occasion, Dr Haider Ali explained that the seminar aimed to deliberate on aligning short-term macroeconomic stabilisation efforts with long-term sustainable growth strategies under the URAAN Pakistan framework. URAAN Pakistan is a strategic initiative by the Planning Commission built on the '5Es': Exports, E-Pakistan (digitalization), Environment, Energy, and Equity. Dr Khurram Ejaz presented a comprehensive overview of the current economic context and proposed strategies to move towards a stable growth path under URAAN Pakistan. He noted that Pakistan's economy has faced a multitude of external and internal shocks, including post-pandemic disruptions, the Russia-Ukraine conflict, and the devastating 2022 floods. These factors pushed the country toward fiscal and balance-of-payment crises, culminating in the signing of an Extended Fund Facility (EFF) with the IMF in September 2024. The IMF programme emphasised restoring macroeconomic stability through fiscal tightening, monetary policy, and external sector stabilisation. While it succeeded in curbing inflation and modestly reviving growth estimated at 2.7 percent, it limited the fiscal space for development spending capped at 2.6 percent of GDP. Dr Ejaz contrasted this with the ambitious targets of URAAN Pakistan, which envisions 6 percent GDP growth by 2029 with significantly higher employment generation. He acknowledged a critical financing gap between what is possible under the IMF framework and what URAAN Pakistan aspires to achieve. He proposed following five initial strategies to bridge this gap: (i) repositioning Development Finance Institutions (DFIs) to fulfill their core mandate rather than investing in low-risk securities; (ii) migrating suitable PSDP projects to Public-Private Partnership (PPP) mode to crowd in private capital; (iii) issuing diaspora, green, and SDG-linked bonds to unlock innovative financing; (iv) devolving social sector expenditures to provinces in a phased manner, and (v) reducing losses from state-owned enterprises (SOEs) and monetising non-strategic public assets such as ports under a structured asset recycling programme. Dr Nasir Iqbal questioned the underlying assumption that low growth is due to limited PSDP spending and argued that productivity, export orientation, and youth engagement are more critical to sustained growth than merely increasing public investment. He recommended establishing village-level economic zones, leveraging idle public infrastructure, and simplifying business registration to boost local entrepreneurship. Dr Karim Khan emphasized that IMF programmes and growth are not inherently contradictory and that sustainable growth must be private sector-led. He urged leveraging CPEC Phase-II and capitalising on productive investment avenues. Dr Shujaat Farooq added that governance reform and performance-based budgeting are crucial. He highlighted a disconnect between planning and finance ministries and stressed the need to engage provinces, whose PSDPs now exceed the federal government's in size. Dr Muhammad Zeshan noted the inefficiencies within PSDP allocations and tariff structures that perpetuate rent-seeking and protect low-productivity sectors. He advocated enabling emerging industries such as halal meat exports, seafood, and IT, and preparing for the Fourth Industrial Revolution through digitization, cloud infrastructure, and robotics. Shaaf Najib questioned the long-term impact of PSDP spending, citing studies that showed limited sustainability. He called for improving PSDP efficiency, prioritizing completed projects, and redirecting funds toward sectors with higher fiscal multipliers. Dr Mehmood Khalid appreciated the absence of tax rhetoric in the presentation but criticised the lack of growth diagnostics and the absence of evidence from existing research. He emphasised grounding all strategies within the URAAN Pakistan 5Es and aligning projections with realistic economic modeling. Dr Iftikhar echoed these sentiments, warning against public investment that crowds out private sector liquidity and highlighting inconsistencies in SEZ policies, HEC funding, and NFC allocations. Copyright Business Recorder, 2025
Business Recorder
2 days ago
- Business Recorder
Govt focus on reservoirs minimal despite water woes
ISLAMABAD: Despite the devastating impact of climate change on Pakistan's infrastructure, massive water losses worth billions of dollars and ongoing inter-provincial disputes over water distribution, the government's focus on developing water reservoirs remains minimal. 'The government is working on water reservoirs, but not with the urgency this task demands. We have neither built major reservoirs in the past 40 years nor improved our water usage methods,' said a government official, speaking on condition of anonymity. Pakistan consistently ranked among the top 10 most vulnerable countries to climate change - largely due to the strain on the Indus River system which has been exacerbated by the unilateral withdrawal from the Indus Water Treaty by India in the aftermath of the Pahalgam terror attack and India's insistence that Pakistan is responsible without providing any proof. Water flow in rivers increasing Over 80% of the country's arable land is irrigated by Indus waters. Rising temperatures and recurring heatwaves are expected to intensify water scarcity and worsen drought conditions. According to the Public Sector Development Programme (PSDP) for 2025–26, the government allocated Rs 20 billion for the Dasu Hydropower Project (Stage-I), Rs 3.4 billion for the 1,410 MW Tarbela 5th Extension Hydropower Project, and Rs 500 million for the 54 MW Attabad Lake Hydropower Project. Additionally, funds have been set aside for the refurbishment and upgradation of Mangla Power Station to enhance its capacity from 1,000 MW to 1,310 MW. Rupees 25 billion has been earmarked for the Diamer-Bhasha Dam (including the Tangir Hydropower Project), while Rs 7.78 billion is allocated for land acquisition and resettlement (2nd revised) under the same project. The Mohmand Dam Project (800 MW) has received a substantial allocation of Rs 35.72 billion. The federal government is currently exploring financing options for the $10 billion Diamer-Bhasha Hydropower Project—$8 billion for the dam and $2 billion for the transmission line. Development partners have shown reluctance to commit the required funds. The project, which has an installed capacity of 4,500 MW and a gross storage of 8.1 MAF, is expected to generate 18.1 billion units of electricity annually, plus an additional 2.5 billion units for downstream projects. It is seen as crucial for enhancing energy security, reducing carbon emissions, and addressing water shortages. Last month, Prime Minister Shehbaz Sharif chaired a high-level meeting where he directed authorities to remove all obstacles hindering the timely completion of the $15 billion Diamer-Bhasha Dam, calling it vital for Pakistan's energy and agricultural security. Officials involved in water infrastructure stress the need for diverting additional financial resources toward reservoir development beyond current commitments. The Water and Power Development Authority (WAPDA), responsible for building and managing dams, estimates that new projects could make an additional 10 million acre-feet (MAF) of water available within 4–5 years. 'With new dams, water availability could rise from the current 13 MAF to 23 MAF per annum,' the former Wapda chairman told a parliamentary panel in January. However, the main challenge remains financing, especially for key reservoirs like Diamer-Bhasha. Pakistan currently has access to 135 MAF of surface water, of which 102 MAF is used for agriculture. Nearly 94% of this water goes to agriculture alone. Experts argue this percentage must be reduced—China, for example, brought it down from over 90% to 60%. Efficient irrigation methods, largely under provincial jurisdiction, have yet to be implemented. While the World Bank has funded efforts such as concrete canal delivery systems, actual progress on the ground remains limited. Command area development activities are underway but remain unsatisfactory. Currently, around 450 million acres of land are irrigated with canal water, which typically faces a 25% supply shortfall. To close this gap, Pakistan needs 15–16 MAF of new storage capacity. However, the Diamer-Bhasha Dam, with a 6.4 MAF capacity, will not be operational until 2029 or 2030—by which time demand could increase to 14–15 MAF. Even then, the DBD would only reduce the shortage from a projected 35% to around 25%. Pakistan is now bearing the consequences of its prolonged inaction on water storage infrastructure. To address financing gaps, the government has approached the Arab Consortium—including the Saudi Fund, Kuwait Fund, OPEC Fund, and the Islamic Development Bank (IsDB)—for support. These institutions previously supported the Mohmand Dam, and securitization of existing assets like the Ghazi Barotha Dam is now being explored to fund DBD. 'IsDB, SFD, and the ADB have been approached to help bridge the $3.5 billion funding gap for DBDP. However, no multilateral development bank has yet stepped up as an anchor financier,' said an official source. 'If Wapda is to secure funding, there are two main options: either the government provides a sovereign guarantee — which is unlikely — or Wapda issues a bond based on its balance sheet. But that's not feasible either, given its Rs 214 billion in receivables from the power sector,' said the source. This receivable is part of the broader issue of circular debt, which undermines Wapda's creditworthiness. Lenders are expected to scrutinize Wapda's repayment capacity before committing funds. The government is also exploring loans secured against operational projects or offering attractive returns to entice investors. Nine out of Pakistan's ten largest cities lie within 50 kilometers of the Indus River. The continued degradation of the Indus Basin presents a looming economic, social, ecological, and demographic threat to the country's development and stability. Copyright Business Recorder, 2025
