Latest news with #PIDCL
Express Tribune
6 days ago
- Business
- Express Tribune
Centre revives Rs20b uplift projects in Karachi, Hyderabad
The federal government has decided to restart stalled development projects in Karachi and Hyderabad using federal funds, with a firm commitment to transparency and merit-based tendering. The move aims to eliminate interference from corrupt networks and parallel administrative systems that have historically undermined infrastructure development. The Pakistan Infrastructure Development Company Limited (PIDCL) has announced the revival of 193 development schemes, previously cancelled due to irregularities and lack of competition. These projects, worth billions of rupees, were originally approved for constituencies represented by MNAs of the Muttahida Qaumi Movement-Pakistan (MQM-P). PIDCL has finalised two major funding packages - Rs15 billion for Karachi and Rs five billion for Hyderabad — under which infrastructure development will be carried out in line with strict merit-based procedures. According to the new guidelines, tenders will be awarded without the customary commission cuts, kickbacks, or political interference. "Contracts will no longer be sold, and all payments will be made transparently. Projects will be completed on time and according to the approved standards," said PIDCL General Manager Shafi Chachar. He added that contractors who quote rates more than 10% below the lowest bidder may be required to complete the work at their own expense to prevent manipulation through unsustainable bidding. All awarded contracts must be backed by valid bank guarantees, and no project will proceed without meeting these financial safeguards. To further strengthen transparency, PIDCL will implement an e-procurement system, which is expected to reduce favouritism and ensure that tenders are awarded purely on merit. Independent consultants will be appointed to monitor project execution and adherence to quality standards. Out of 410 development schemes initially proposed by MQM-P MNAs, 193 were previously cancelled due to the presence of single bidders or unhealthy competition. PIDCL plans to reissue tenders for these schemes in the coming days. In response to concerns over billing fraud, Chachar said PIDCL will coordinate with relevant departments at the initiation and completion stages of each project. Signboards displaying project details will also be installed at construction sites to ensure public visibility and accountability. "The federal government has released the required funds, and development work has already begun under the supervision of PIDCL. Citizens of Karachi and Hyderabad will start seeing tangible improvements once the schemes are completed," he added. The move to conduct "system-free" development - without political brokerage or corrupt intermediaries - marks a crucial shift in the approach toward urban infrastructure in Sindh's two largest cities. PIDCL officials expressed hope that the initiative would restore public confidence in development programmes and bring long-overdue relief to residents.
Express Tribune
30-07-2025
- Business
- Express Tribune
193 schemes proposed by MNAs cancelled
More than 193 development schemes worth billions of rupees, proposed by MNAs from Karachi and Hyderabad, have been cancelled following allegations of serious irregularities in the tendering process, sources told The Express Tribune. The Pakistan Infrastructure Development Company Limited (PIDCL) — now responsible for executing these projects — scrapped all the tenders issued two months ago, citing concerns over corruption linked to former officers of the now-defunct Public Works Department (PWD). According to sources, the development schemes had been initiated on the recommendations of MNAs from both cities and were previously handled by the PWD. After the department's dissolution, the execution of such federally-funded schemes was transferred to PIDCL. However, the company reportedly enlisted the help of several ex-PWD officials to oversee the tendering process, which led to the awarding of contracts through e-tendering. Senior contractors allege that the process was marred by serious irregularities and contract trading. In response, PIDCL CEO Waseem Bajwa and General Manager Shafi Chachar took strict notice and ordered the cancellation of all awarded tenders. Sources further revealed that PIDCL plans to issue fresh advertisements for re-tendering the schemes. However, the cancellations have brought development work in Karachi and Hyderabad to a standstill, raising concerns among lawmakers over the future of their constituency funds. Insiders also noted that PIDCL lacks the engineering capacity required to manage such a large volume of development projects - a shortfall that could jeopardize the timely utilisation of MNA development funds. Despite repeated attempts, the PIDCL general manager could not be reached for comment.
Business Recorder
19-06-2025
- Business
- Business Recorder
GST on imported solar panels reduced to 10pc
ISLAMABAD: Deputy Prime Minister and Foreign Minister Ishaq Dar said that the digital sales tax on services would remain within the jurisdiction of provinces and proposed general sales tax (GST)on solar panels has been reduced from 18 per cent to 10 per cent. Speaking on the floor of the National Assembly on Wednesday, Dar said that after detailed discussions with coalition partners and relevant stakeholders, consensus had been reached on resolving several contentious budgetary issues. He said that as part of the revisions, it was agreed that the imposition of digital sales tax on services falls under the constitutional domain of provincial governments. 'The concerns regarding digital taxation were valid. We held in-depth consultations with all stakeholders, including the Federal Board of Revenue (FBR), and it has been decided that the matter will be clearly addressed in the finance minister's budget winding-up speech.' NA panel rejects 18pc GST on solar panels He said that the earlier proposal of imposing 18 per cent general sales tax (GST) on solar panels had sparked considerable debate. Upon review, he said that it was revealed that 54 per cent of components used in solarisation were already taxed under the existing regime, and the 18 per cent tax applied only to the remaining 46 per cent. However, after mutual consultations, we have now proposed reducing the solar GST from 18 per cent to 10 per cent, he announced. The deputy prime minister said that tax proposals are essential for revenue generation, and any relief in one area necessitates compensation elsewhere. He pointed out that when the cabinet found the initial proposal of a six per cent salary increase for government employees insufficient and raised it to 10 per cent, corresponding budgetary adjustments also had to be made. 'We must move forward collectively. Our approach is rooted in consensus and cooperation.' Highlighting another key issue, he said it was decided to maintain funding for proposed universities in Sindh under the Public Sector Development Programme (PSDP) at Rs4.7 billion through the Higher Education Commission (HEC). He said that fund would be released for the universities. The deputy prime minister acknowledged valid concerns raised by the members of the house about the closure of the Public Works Department (PWD) and confirmed that the Pakistan Infrastructure Development Company Limited (PIDCL) would now oversee all federal development projects across provinces. He said that the PIDCL was initially formed for Sindh, but its mandate has now been expanded to oversee development projects across all provinces. Dar concluded by reaffirming the government's willingness to address genuine concerns through mutual dialogue and constructive engagement. Pakistan People's Party (PPP) senior leader Syed Naveed Qamar thanked Prime Minister Shehbaz Sharif and Deputy Prime Minister Ishaq Dar for accommodating the proposals of the party and Sindh government. 'We had wanted to reduce all 18 per cent tax on solar panels but it cannot do so. After approval of budget, a committee will be formed to discuss further reduce tax on solar panels.' He also acknowledged the government's decision to expand the mandate of the Pakistan Infrastructure Development Company Limited (PIDCL) to all provinces, instead of limiting it to Sindh, effectively addressing another PPP concern. Aijaz Hussain Jakhrani highlighted the steps being taken by Sindh government for development of Karachi including its health infrastructure. He said that we also want to eliminate arrest power of Federal Board of Revenue (FBR). He also said that the Sukkur-Hyderabad Motorway is a vital need of the people and urged the authorities to pay attention to the project. Earlier, legislators from both opposition and treasury benches called for the establishment of Special Agriculture Zones, IT Facilitation Centres nationwide, increased farmer support, and funding for churches and temples to promote economic growth and social inclusion. Resuming general budget discussions on the fifth day in the National Assembly, Dr Zulfikar Ali Bhatti of PML-N stressed the need to develop rural areas and strengthen the agricultural sector. He proposed the establishment of Special Agriculture Zones nationwide, equipped with all necessary facilities to enhance agricultural productivity. He also advocated for providing incentives to farmers. Additionally, he called for the creation of IT facilitation centres in rural regions and the implementation of skill development programs for youth, particularly in these areas, to promote self-sufficiency. Fatehullah Khan of PPP strongly denounced Israel's aggression against Iran. Drawing attention to the suffering of flood victims in his constituency, he urged the government to provide compensation to those affected. Awais Haider Jhakar of the Sunni Ittehad Council (SIC) highlighted the challenges faced by farmers and criticised government policies that have contributed to a decline in agricultural production. Sanjay Parwani of the MQM criticised the government for failing to allocate what he described as even a single penny for the country's churches and temples in the 2025-26 federal budget. Abdul Ghafoor Haideri of JUI-F urged the Deputy Speaker Ghulam Mustafa Shah to issue a ruling demanding strict punishment for the miscreants involved in the attempted abduction of Maulana Fazlur Rehman's son and called for the immediate arrest of those responsible. PPP's Zulfiqar Ali Behan called for the imposition of an agricultural emergency in the country and the removal of taxes on fertilisers to boost agricultural production. Chaudhry Mubeen Arif Jatt of SIC called for the immediate withdrawal of the proposed 18 percent GST on solar panels. He also highlighted the hardships faced by farmers, noting that their produce is being sold at prices lower than their production costs. Chaudhry Riazul Haq of PML-N demanded a review of the Federal Board of Revenue (FBR)'s excessive powers and emphasised the need to lower fertiliser prices. Sohail Sultan said that it is the government's duty to provide relief to the people. He urged the government to increase the monthly income of labourers and suggested including youth programmes in the current budget. Parliamentary Secretary Sajid Mehdi lauded the armed forces and their chiefs for performing outstanding performance against the Indian aggression against Pakistan. He said that Pakistan is far behind in modern agriculture, lamenting that we cannot even produce the seed of any crop. He linked the development of the country with the agriculture sector, adding, we cannot progress unless we develop agriculture sector. He said that a small relief was given to farmers in the shape of solar power but the government imposed tax on this facility which is injustice. He demanded that the pesticides and fertiliser be tax-free. Mahtab Akbar Rashdi, Muhammad Moeen Wattoo, Rai Hassan Nawaz Khan, Chaudhry Anwarul Haq, Nasir Iqbal, Musa Gilani, Ali Jadoon, and others participated in the budget debate. Copyright Business Recorder, 2025
Business Recorder
18-06-2025
- Business
- Business Recorder
Digital sales tax stays with provinces, solar GST cut to 10%: Dar
Deputy Prime Minister and Foreign Minister, Senator Muhammad Ishaq Dar on Wednesday said that the digital sales tax on services would remain within the jurisdiction of provinces, while the proposed 18% GST tax on solar panels had been reviewed and revised down to 10% following consultations. Speaking in the National Assembly, Senator Dar stated that after detailed discussions with coalition partners and relevant stakeholders, consensus had been reached on resolving several contentious budgetary issues. As part of the revisions, it was agreed that the imposition of digital sales tax on services falls under the constitutional domain of provincial governments. 'The concerns regarding digital taxation were valid. We held in-depth consultations with all stakeholders, including the Federal Board of Revenue (FBR), and it has been decided that the matter will be clearly addressed in the Finance Minister's budget winding-up speech,' he said. Mian Zahid concerned over proposed 18pc tax on solar panels Dar further clarified that the earlier proposal of imposing 18% General Sales Tax (GST) on solar panels had sparked considerable debate. Upon review, it was revealed that 54% of components used in solarization were already taxed under the existing regime, and the 18% tax applied only to the remaining 46%. However, after mutual consultations, we have now proposed reducing the solar GST from 18% to 10%, he announced. He emphasized that tax proposals are essential for revenue generation, and any relief in one area necessitates compensation elsewhere. He pointed out that when the cabinet found the initial proposal of a 6% salary increase for government employees insufficient and raised it to 10%, corresponding budgetary adjustments also had to be made. 'We must move forward collectively. Our approach is rooted in consensus and cooperation,' he said. enter link description here Highlighting another key issue, Dar said it was decided to maintain funding for a proposed university in Sindh under the Public Sector Development Programme (PSDP) at Rs 4.7 billion through the Higher Education Commission (HEC). He also acknowledged valid concerns raised by MNAs regarding the closure of the Public Works Department (PWD) and confirmed that the Pakistan Infrastructure Development Company Limited (PIDCL) would now oversee all federal development projects across provinces. He said, while PIDCL was initially formed for Sindh, its mandate has now been expanded to oversee development projects across all provinces. Senator Dar concluded by reaffirming the government's willingness to address genuine concerns through mutual dialogue and constructive engagement. Meanwhile, Pakistan Peoples Party (PPP) MNA Syed Naveed Qamar thanked Prime Minister Shehbaz Sharif and Deputy Prime Minister Ishaq Dar for accommodating key PPP and Sindh government budget proposals. Speaking in the National Assembly, Qamar said the government accepted major demands raised by PPP lawmakers during the budget debate. He welcomed the reduction of proposed sales tax on solar equipment from 18% to 10%, aligning with the party's stance. He also acknowledged the government's decision to expand the mandate of the Pakistan Infrastructure Development Company Limited (PIDCL) to all provinces, instead of limiting it to Sindh, effectively addressing another PPP concern.
Business Recorder
14-06-2025
- Business
- Business Recorder
Karachi, Hyderabad uplift packages: ECC approves Rs20bn non-lapsable funds thru PIDCL
ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has approved non-lapsable funds of Rs 20 billion under Karachi and Hyderabad Urban Infrastructure Development Packages through Pakistan Infrastructure Development Company Limited (PIDCL), well informed sources told Business Recorder. Ministry of Housing & Works has briefed the ECC that the Prime Minister of Pakistan had directed that the special development packages for Karachi at a cost of Rs.15 billion and Hyderabad at a cost of Rs.5 billion be prepared to address the pressing development demands of both the cities as federal government initiatives, which were duly reflected in federal PSDP 2024-25 with substantial allocations. In this regard it was stated that PIDCL was a company registered under Section 32 of the Companies Act 2017, and was recently transferred from M/oPD&SI. The company was established for executing Green Line project in Karachi. PIDCL's mandate had been expanded to cover entire Pakistan and had been entrusted execution of special packages and some of erstwhile PWD projects, without concomitant wherewithal. PIDCL had also been assigned the task for execution of Development Schemes Hyderabad Package (PSDP number 223) and Karachi Package (PSDP number 222) vide Ministry of Planning, Development and Special Initiatives letter of April 15, 2025. Rs137bn uplift package for Lahore approved by CM A summary in this regard was moved to ECC on May 20, 2025 through M/o Finance with the request for: (i) Technical Supplementary Grant (TSG) of Rs.15 billion for Karachi and Rs.5 billion for Hyderabad; and (ii) to keep the fund available for timely execution, the PIDCL may be allowed for depositing the said fund in non-lapsable accounts. Finance Division had issued concurrence for the TSG. However, since no advice was tendered on non-lapsability, another request has been sent to Ministry of Finance. Ministry of Planning Development and Special Initiatives, in its letter of May 23, 2025 replied to the Finance Division that Finance Division may take further action for surrender of revised allocation of Rs.20 billion of projects PSDP number 223 and PSDP number 222 reflecting under Finance Division as per revised PSDP in favour of Ministry of Housing and Works for further processing the case as per procedure. In the light of response received from PD&SI Division, Finance Division, in a letter of May 26, 2025 had agreed that Finance Division does not have any objection to surrender an amount of Rs.15 billion from PSDP Project titled Karachi Urban Infrastructure Development Package, PSDP number 222 and Rs.5 billion for the project tilted: Hyderabad Urban Infrastructure Development Package, PSDP number 223 from Finance Division's Demand No.109-Other Development Expenditure, in favour of Ministry of Housing and Works demand 130-Capital Outlay on Civil Works. Approval of the ECC was solicited for the following: Ministry of Housing and Works may be allocated the surrendered funds amounting to Rs.15 billion from PSDP project, titled: Karachi Urban Infrastructure Development Package, and Rs.5 billion from the project titled: Hyderabad Urban Infrastructure Development Package through Technical Supplementary Grant from Finance Division's Demand No. 109-Other Development Expenditure, in favour of Ministry of Housing and Works' Demand 130- Capital Outlay on Civil Works; and to keep the fund available for timely execution, the PIDCL may be allowed for depositing the said fund in non-lapsable accounts. During the ensuing discussion, Finance Division endorsed the proposal with the condition that out of total requested funds of Rs. 15 billion for the Karachi Urban Infrastructure Development Package, Rs. 10 billion will be allocated to the Ministry of Housing and Works from the surrendered funds of PSDP project No 222, while the remaining Rs. 5 billion will be arranged by the Ministry of Housing and Works through internal adjustment of their existing budgetary resources. It was also explained that the matter had already been discussed by the Steering Committee on Sustainable Development Goals Achievement Programme in its meeting held on June 2, 2025, and it had been decided that the PIDCL will execute the SDG projects under the same arrangements as was done by the erstwhile Pak PWD. Copyright Business Recorder, 2025
