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Express Tribune
3 days ago
- Business
- Express Tribune
Rs415 billion approved for rehabilitation of 'killer road'
The government on Friday conditionally cleared the construction of three different sections of the 'killer road', the Balochistan Expressway or N-25, at an estimated cost of Rs415 billion, which is being funded through Rs8 per liter levy on petrol and high speed diesel. The Central Development Working Party (CDWP) cleared, in principle, construction of the three sections having a total length of 692 kilometers with an estimated cost of Rs415 billion for three different sections, according to the Ministry of Planning officials. Once completed in at least three years, there will be a dual carriageway from Quetta to Karachi, which will also open new avenues of economic development and connectivity. The Deputy Chairman of the Planning Commission and Planning Minister Ahsan Iqbal chaired the CDWP meeting. The project, to be executed in three different sections, will be presented before the Executive Committee of the National Economic Council (ECNEC) for its final approval after the National Highway Authority addresses queries raised in the CDWP meeting on Friday. The CDWP has the mandate to approve up to Rs7.5 billion projects and refer the higher cost schemes to ECNEC, which is chaired by the Deputy Prime Minister Ishaq Dar. The CDWP recommended dualisation of Karachi-Quetta-Chaman road having 278 kilometer length for the approval of ECNEC. This route will be constructed with a cost of Rs183.4 billion in three years and Rs33 billion have been set aside in the budget for the current fiscal year. However, given the low allocations in the first year, it will be challenging to complete this major route in three years unless the allocation is increased to Rs75 billion annually from the next fiscal year. The CDWP also in principle cleared the Rs99 billion worth dualization of Khuzdar-Kuchlak section of N-25 having 332 kilometers length. For the current fiscal year, the government has allocated Rs34 billion for its construction. The cost of the Khuzdar-Kuchlak section is less compared to the other two roads due to the award of contracts in the year 2021. About 52% work on this Khuzdar-Kuchlak road is already completed and the remaining work is expected to be finished in two years. The CDWP also sanctioned the dualization of Karoro Wadh section & Khuzdar Chaman section at a cost of Rs133 billion to build 104 kilometer road. For this fiscal year, Rs33 billion have been earmarked for this section. This project will need Rs50 billion per annum allocation for the next two fiscal years to complete the scheme on time. Prime Minister Shehbaz Sharif in April this year imposed an additional Rs8 per liter levy on every liter of petrol and diesel consumed by rich and poor alike to fund these deadly roads. There had been criticism against the Prime Minister's decision due to the fact that people already are heavily taxed and the government should wisely use these resources instead of putting more burdens. The government currently charges Rs75 per liter petroleum levy, Rs2.5 per liter climate levy and 10% custom duty on every liter of petrol sold in Pakistan, making it one of the heaviest taxed products. The petrol is now sold at Rs272 per liter after adding all taxes and profit margins of dealers. But PM Shehbaz reacted to these criticisms and stated that those opposing road projects in Balochistan, were narrow-minded. "We will complete the Karachi, Kalat, Khuzdar, and Quetta highway projects to the highest standard," he had vowed. The premier had said that the initiative to build roads reflected the aspirations of the people of Balochistan and was aimed at enhancing connectivity and ensuring safer travel in the province. The CDWP raised questions about the alignment of roads, revisions in the cost and the land acquisition. Once the sponsoring ministries address these questions, the projects will be tabled before the ECNEC for the final approval. For the current fiscal year, the government has allocated Rs1 trillion for the federal Public Sector Development Programme. Out of this, Rs210 billion has been set aside for various projects of Balochistan.
Business Recorder
10-07-2025
- Business
- Business Recorder
FY2024-25: Historic milestone achieved in PSDP spending: minister
ISLAMABAD: Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal said that despite tight fiscal constraints, Pakistan had achieved a historic milestone in development spending by crossing Rs 1 trillion for financial year 2024-25. 'First time ever Rs 1.46 trillion (96 percent) of the PSDP for FY2024–25 had been utilised, reflecting strong implementation. This utilisation is driving inclusive growth through targeted investments in exports, innovation, and human development. The PSDP, which was limited to Rs 754 billion last year, is now back on the path of growth. The PSDP, initially set at Rs 1.4 trillion, was reduced to Rs 1.1 trillion due to macroeconomic constraints,' the minister expressed these views while speaking at the launch of the 'Monthly Development Report' on Thursday. He said that for the first time ever, Pakistan has closed its development budget with such high utilisation, reflecting our unwavering commitment to development as a national priority. Govt spends record Rs1.046tr under PSDP in FY25: Ahsan Iqbal The minister said that any underutilisation this year would have shifted financial burdens to the next fiscal year, where the PSDP has already been further reduced to Rs 1 trillion. 'We had no fiscal space to leave Rs 200-300 billion unutilised that would have created a backlog and severely impacted our development portfolio. Thankfully, we avoided that scenario through discipline and coordination,' he said. He said that in the current fiscal year, Balochistan projects have been given top priority and Rs 210 billion has been allocated for 147 projects. He said that the launch of infrastructure projects in Balochistan would help stimulate the economy of Balochistan and creating development and employment opportunities. He said, 'Under Uraan Pakistan, we are witnessing a positive turnaround in economy. One of the biggest indicators is inflation, which dropped to 4.5 percent, the lowest in nine years. That's a 23.4 percent decrease from last year — a rare feat globally.' The minister said that Pakistan's macroeconomic performance in financial year 2025 demonstrated resilience despite global headwinds, with GDP growth rising to 2.7 percent and the inflation dropping sharply to an average of 4.5 percent, the lowest since financial year 2016. He said that the inflation rate in the previous year was 23.4 percent. He said that remittances exceed $38 billion, a 27 percent increase in one year. He said that Pakistan Stock Exchange recorded 65 percent growth in fiscal year 2024-2025. He said that strong fiscal consolidation reduced the deficit to 3.7 percent of GDP, supported by record tax revenues of Rs 11.740 trillion, while the external sector posted a $1.8 billion current account surplus, driven by higher exports and record remittances. On the development front, the minister said that 33 projects at cost of Rs 90.4 billion were approved by the Central Development Working Party (CDWP) in June 2025, while 19 major projects at cost of Rs 1.423 trillion were recommended to the Executive Committee of the National Economic Council (ECNEC). He said that the remaining seven projects were deferred for further review. These initiatives are expected to create approximately 9,968 direct and 47,174 indirect jobs in the coming months, he said. He said that major investments targeted energy (over Rs500 billion), transport (Hyderabad–Sukkur Motorway at Rs 395 billion, Eastbay Expressway at Rs 301 billion), education (Rs 43 billion for 17 projects), health (Rs 25.5 billion), and water (Ghand Dam at Rs 6.4 billion). Iqbal said, 'Due to improved scrutiny and evaluation of projects, Rs 1 billion in savings was achieved during June.' He said that the global ranking of Pakistani passports has improved, with the Pakistani passport moving up from 113 to 100. He said that Pakistan demonstrated its defensive superiority in the region through 'Operation Bunyan um Marsoos.' He said that Pakistan's stance on the Pahalgam attack and Iran-Israel tensions was recognised globally. He said that the world rejected India's narrative and accepted Pakistan's stance, adding Pakistan achieved a major success on the diplomatic front. He said that our goal is to achieve one trillion-dollar economy by 2035. A major digital connectivity project worth Rs 2,150 million is underway in 30 cities of AJK and GB. The initiative is transforming lives by expanding access to education, healthcare, tourism, and business opportunities in these remote areas. Copyright Business Recorder, 2025
Business Recorder
10-07-2025
- Business
- Business Recorder
Govt spends record Rs1.046tr under PSDP in FY25: Ahsan Iqbal
The federal government utilized a record Rs1.046 trillion under the Public Sector Development Programme (PSDP) during FY2024–25, reflecting 96% of the total allocation, Planning Minister Ahsan Iqbal said on Thursday. Speaking at the launch of the Ministry of Planning's Monthly Development Update, Iqbal said the development spending, the highest in Pakistan's history, marks a return to a growth-oriented trajectory. 'The PSDP, which was Rs754 billion last year, is now back on track,' he said. Iqbal credited the surge to improved project execution and better economic management, noting signs of macroeconomic stability, including GDP growth, easing inflation, and improved external indicators. Budget 2025-26: Rs1trn planned for PSDP, says Ahsan Iqbal In June alone, the Central Development Working Party (CDWP) approved 33 projects, while 19 major initiatives were referred to ECNEC. The minister said this will help create nearly 57,000 jobs, and noted Rs1 billion was saved through improved scrutiny. Iqbal said Balochistan remained a key focus, with Rs210 billion allocated for 147 projects, including the Karachi-Quetta-Chaman Highway, M-8 Motorway, and post-flood reconstruction. A Rs2.15 billion digital connectivity project is also underway in 30 cities of AJK and GB. The Ministry exceeded its annual monitoring target, covering 261 projects versus a goal of 240. On energy, petrol and diesel prices declined 5% since March 2024, while electricity tariffs saw an overall 35% cut, including a 69% reduction for the 51-100 unit slab. Only uplift-oriented projects be included in PSDP: minister On the diplomatic front, Iqbal highlighted Pakistan's strengthened global standing, citing recognition of its position on regional tensions and improved passport ranking, which moved from 113th to 100th since 2021. He also announced the launch of the URAAN Overseas Summer Internship Programme, through which 31 Pakistani students from top global universities are working on national development projects. 'The data shows Pakistan is regaining macroeconomic stability, with inclusive and sustainable growth back on the agenda,' Iqbal added.
Business Recorder
04-07-2025
- Business
- Business Recorder
Daanish Schools: CDWP approves six projects worth Rs19.253bn
ISLAMABAD: The Central Development Working Party (CDWP) approved six development projects related to Daanish Schools at cost of Rs19.253 billion. The CDWP met with Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal in the chair at P-Block Secretariat on Thursday. The projects were presented by the Ministry of Federal Education and Professional Training and were cleared at the CDWP level. The meeting was attended by Secretary Planning Awais Manzur Sumra, Chief Economist, Vice Chancellor PIDE, members of the Planning Commission, federal secretaries, heads of provincial Planning and Development departments, and senior representatives from relevant federal ministries and provincial governments. The approved projects include: (1) Establishment of Danish Schools at District Kan Mehtarzai, Qilla Saifullah, Balochistan at cost of Rs2.93 billion; (2) Establishment of Danish Schools at District Sibi, Balochistan at cost of Rs3.352 billion; (3) Establishment of Daanish School at Azad Jammu and Kashmir worth Rs3.043 billion; (4) Establishment of Daanish School at Baiker, District Dera Bugti, Balochistan valued atRs2.666 billion; (5) Establishment of Daanish School at District Musakhel, Balochistan worth Rs3.631 billion, and (6) Establishment of Danish Schools at District Zhob, Balochistan worth Rs3.632 billion. All six projects are based on a 50:50 cost-sharing formula between the federal government and the respective provincial governments. In line with Prime Minister Shehbaz Sharif's initiative to provide a high-quality education system across the country, the Punjab government had earlier established a wide network of Daanish Schools, the largest system of free boarding schools for boys and girls in Pakistan. Now, other provinces are also taking steps to replicate this model to support talented students from underprivileged backgrounds. The federal government also plans to establish new Daanish Schools in underserved districts. For this purpose, land has been proposed and detailed visits will be conducted during the feasibility stage. These schools will move beyond traditional rote learning methods and promote 21st Century education models by integrating technology to improve delivery and track student progress. The core objective of the project is to set up fully functional boarding schools with staff residential facilities, equipped with modern education systems. These institutions will serve both boys and girls from Grade 6 to 12. Each school is envisioned as a model institution that combines advanced learning technologies with traditional values, focusing on innovation, entrepreneurship, and digital literacy, all within a safe and inspiring learning environment. While reviewing the proposals, Federal Minister Ahsan Iqbal said that more than 25 million children in Pakistan are currently out of school, which is a serious national concern. He stressed that raising the literacy rate to 90 percent is essential for the country's development. He reaffirmed the federal government's commitment to invest in education and support the provinces in building modern, quality institutions such as Daanish Schools under the Public Sector Development Programme (PSDP). Copyright Business Recorder, 2025
Express Tribune
22-06-2025
- Business
- Express Tribune
CDWP greenlights Rs55b uplift projects
The Central Development Working Party (CDWP) — a key planning and project-approval body — has approved five development projects worth Rs55.164 billion for sustainable economic development in the country. A CDWP meeting held on Friday under the chairmanship of Federal Minister for Planning Ahsan Iqbal greenlighted these projects. Out the five, three projects totaling Rs47.439 billion were referred to the Executive Committee of the National Economic Council (ECNEC) for final approval. The agenda focused on development projects across key sectors, including environment, food and agriculture, health and physical planning and housing. A project related to the environment sector — installation of Weather Surveillance Radar at Sukkur — worth Rs5725.013 million was also approved. The chair noticed inordinate delay in implementation of the project with Japanese grant and directed the relevant authority to complete it on priority basis. A project related to food and agriculture — Balochistan Livelihoods and Entrepreneurship Project — was also recommended to ECNEC. The revised cost of the project is Rs12461.661 million. It will be financed through World Bank and International Development Association (IDA) and MDTF. The main objective of the project is to promote employment opportunities for rural communities and ensure the sustainability of enterprises in eight districts of Balochistan including Chagai, Killa Abdullah, Killa Saifullah, Mastung, Nushki, Pishin, Sherani, and Zhob. The project aims to benefit rural households by supporting livelihoods through enterprise development and job creation. Furthermore, it will extend benefits to communities for enterprises development in sectors — agriculture, livestock, forestry, mines and minerals, tourism, and industry. Ahsan Iqbal directed that the additional scope of work should include tangible and impact oriented interventions under the project.
