7 days ago
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NA body informed: Govt decides to launch M-6 project on a priority basis
ISLAMABAD: The National Assembly Standing Committee on Economic Affairs was informed on Tuesday that government has decided to launch the Motorway (M6) on a priority basis in the development programme of the next fiscal year.
Officials from the Ministry of Economic Affairs informed the committee that the ministry had proposed foreign financing of Rs500 billion. The ministry estimates that a rupee cover will be required for financing of Rs400 billion.
The meeting of the Standing Committee was held under the chairmanship of Atif Khan, which was informed that negotiations are underway with the Islamic Development Bank and the Saudi Fund for financing the motorway.
Secretary Economic Affairs Division Dr Kazim Niaz said that launching the M6 Motorway is currently the government's top priority. The Islamic Development Bank will provide $500 million for two sections of the M6 Motorway.
Talks are being held with the OPEC Fund and the Saudi Fund for Development for other sections. Talks are also being held with the Asian Development Bank (ADB). It is hoped that the Saudi Fund for Development will take up one section.
Committee member Mirza Ikhtiar Baig said that the development of Karachi and Sindh depends on these two projects. The real purpose of building the motorway will be fulfilled by connecting the motorway with the port.
The secretary Economic Affairs Division said that a new Country Partnership Strategy is being prepared with the Asian Development Bank. The committee was informed that important projects will be completed in the next fiscal year to improve the electricity transmission system.
The committee was also informed that $460 million financing was available for Khyber Pakhtunkhwa Economic Corridor. The provincial government has to take several steps to get funding from the World Bank. This is an important project, the provincial government should resolve all issues quickly, secretary Economic Affairs Division added.
In the last three years, short-term debt has been reduced and long-term debt has increased, he added. As the country's economic situation has improved, it has also become easier to obtain loans and set terms. Commercial loans are available for short periods and at high interest rates. In the last three years, the debt-to-GDP ratio has decreased to 67 percent, the secretary EAD added.
The committee postponed the briefing on development projects in the absence of the planning minister and planning secretary. The Power Division has 82 development projects, said Special Secretary Power Division Arshad Majeed. Of these, 77 percent of the financing is allocated for transmission projects.
Most of the projects of the Power Division are being carried out by NTDC, said Majeed. We thought that power generation would increase, said NTDC officials, adding that due to solarisation, the demand for power has decreased in the last five years.
Copyright Business Recorder, 2025
