Pakistan is currently grappling with significant delays in the execution of around 50 foreign-funded projects, despite receiving multibillion-dollar loans from various multilateral and bilateral creditors. This issue was discussed in a meeting of the National Assembly’s Standing Committee on Economic Affairs Division (EAD) held at the Parliament House under the chairmanship of Muhammad Atif, MNA, on Wednesday.
The committee was briefed on the status of multilateral projects and the challenges surrounding local currency components tied to foreign currency transactions. However, the issue of commitment charges due to delays in executing these projects was not fully addressed.
The EAD is responsible for overseeing 18 projects with the Asian Development Bank (ADB), 21 with the World Bank (WB), three with the Islamic Development Bank (IsDB), and projects with other financial institutions like the OPEC Fund, Asian Infrastructure Investment Bank (AIIB), and the International Fund for Agricultural Development (IFAD). These projects span various sectors, including energy, transport, agriculture, public sector management, finance, and health.
Key procedural challenges contributing to delays were outlined, such as lengthy processes for preparing and approving Project Concept-1 (PC-I) documents, revisions that lead to cost overruns, delays in establishing designated project accounts, and a general lack of understanding of development partners’ requirements. The committee stressed the need for timely establishment of Project Management Units (PMUs) and the appointment of dedicated project directors to mitigate these delays.
The committee emphasized incorporating land acquisition, local concerns, and security issues into project policy frameworks. It also decided to summon the secretary of planning for a future meeting to discuss the effective utilization of foreign-funded projects and address these challenges.
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