Balochistan laments delay in projects’ funding

ISLAMABAD: The Balochistan government on Tuesday highlighted that development projects in the province face unnecessary delays in fund releases, leading to cost and time overruns.

The issue was discussed during a meeting of the Senate Standing Committee on Planning, Development, and Special Initiatives, chaired by Senator Quratulain Marri at the Parliament House.

Officials from the Ministry of Planning, Development, and Special Initiatives, along with the Ministry of Finance joint secretary, briefed the committee on the disbursement of funds for Public Sector Development Programme (PSDP) projects in Balochistan for the fiscal year 2024-25. The briefing covered allocation status, fund releases, and the progress of ongoing projects.

Representatives from the Balochistan government revealed that delays in fund releases force revisions in project costs, ultimately burdening the province. They urged the federal government to ensure timely provision of funds.

The Ministry of Finance informed the committee that it had received 30 project proposals under the PSDP 2024-25. Out of a cumulative authorisation of Rs51.548 billion issued by the Ministry of Planning for provincial PSDP projects up to the third quarter, Rs13.254 billion was allocated for Balochistan, with Rs9.692 billion released so far. Officials explained that Rs1.2 billion had already been disbursed for prioritised projects in Balochistan during the third quarter, while an additional Rs3.4 billion is expected to be released within the next two to three weeks.

During the meeting, Balochistan officials cited the example of the Gwadar Development Authority Business Plan (PSDP-254), approved by Ecnec in 2010 with an estimated cost of Rs25 billion. Only Rs12 billion has been released so far, and the project remains stalled due to insufficient funding. The committee chairperson directed relevant authorities to submit a detailed plan, expenditure report, and remaining fund requirements in the next meeting. Additionally, the committee called for the release of funds for all pending PSDP projects in Balochistan and requested copies of the National Economic Council (NEC) decisions regarding the financial burden-sharing mechanism between the federal and provincial governments.

Committee members also expressed serious concerns over the substandard quality of dam construction in Balochistan. In response, the chairperson proposed forming a fact-finding committee to assess the quality of federally-funded projects, ensuring that public funds result in sustainable infrastructure. She emphasised that if the federal government finances a project, it must also oversee its quality. The planning secretary assured the committee that the ministry’s monitoring wing would scrutinise project quality.

Meanwhile, the National Highway Authority (NHA) chairman updated the committee on the progress of the Sukkur-Hyderabad (M-6) and Karachi-Hyderabad (M-9) motorway projects. He stated that the government is currently working on extensive road infrastructure projects spanning 306 kilometers. The M-6 project, a top priority, has been divided into five sections based on feasibility reports from international consultants. Two sections will be developed under public-private partnership (PPP) mode, while the government seeks investment for the remaining three sections, which require substantial funding. The committee recommended a follow-up meeting in the third week of April to review progress.

The NHA also pledged to submit a detailed report in the next meeting regarding delays in the Hyderabad-Karachi Motorway (M-9) project.

The committee also addressed the issue of road fencing theft along motorways. The NHA chairman acknowledged the problem, stating that most stolen fences had been reinstalled. He added that complaints had been filed against the culprits, and the cases are under trial. Theft incidents have significantly decreased following action by the Motorway Police in the Dera Ismail Khan region.

Committee members raised concerns over prolonged construction activities on the M-5 motorway, which has remained under development for over a decade without completion. Similar concerns were voiced regarding the Hala-Matiari section, where construction appears perpetual. The NHA officials assured the committee that detailed reports on these projects would be presented in the next meeting.