The bigger the project, the stronger the vote bank

LAHORE: The incumbent regime had launched long-term megaprojects with a commitment to see them through within their tenure by ensuring around-the-clock work. A simple math shows a six-year project could be completed in just two and a half years after its start given the work on the site never comes to a halt – a feat that is easier promised than pulled off but achievable.

Since 1990, successive governments have been reluctant to launch long time projects. They apprehended the resources diverted to high-cost megaprojects would not earn them any significant number of political brownie points as the benefits such undertakings have to wait until their complete operationalization. Politicians found it easier to launch nonviable placatory projects to please their electorate. They also feared the backlash over the humongous spending on the projects in question would boot them out of power in the next elections.  

Then the Punjab chief minister, Mian Shahbaz Sharif, introduced the concept of speedy completion of megaprojects by binding the contractors to work round the clock. He succeeded in getting many big schemes completed ahead of schedule during his tenure. His masterstroke is the Lahore Metrobus, a mass transit project that was launched in late 2011 and was completed by the end of 2012. The 27 kilometer road, exclusive built mostly overhead on existing routes, reduced the daily commuting time of 1,50,000 industrial workers by three hours. It also saved them money as it was a direct route to the industrial hub of Lahore.

This project benefitted1,50,000 families or over one million people residing in Lahore. At that time the Pakistan Tehreek-e-Insaf (PTI) was well placed to replace Pakistan Muslim League- Nawaz (PML-N) as the main political force in Lahore. But Metrobus changed the sentiments overnight and the PML-N comfortably won the elections in Lahore. When the PML-N came to power in the center it decided to replicate the Punjab model in other parts of Pakistan as well. The China-Pakistan Economic Corridor (CPEC) roads were completed in record time. The power projects launched almost in 2015 are nearing completion. By the past standard, the civil work on these projects would have taken between 24-30 months. The concept again was the same. That is work day and night without any break to ensure completion ahead of time. Through these projects Punjab would add 5000 MW to the national grid, while another 5000 MW coal-based power would come from Sindh.

This new concept referred by the Chinese as “Punjab Speed” is expected to be replicated in other provinces after next elections. The political parties in other provinces have realized that from now on the votes would be cast on the basis of performance.  The other provinces are speeding up the work on existing development projects hoping to make them operational before the next elections. The politicians have also realized that timely completion of projects is cost effective. There will almost be no cost overruns if a project is completed on schedule. Thus, by completing projects on time federal and provincial governments save lot of money; in delayed projects the cost overruns are sometimes more than the original cost of the project. Timely completion of projects saves resources for new ones.

Most of the long term infrastructure projects are economically viable and are capable of repaying the debt incurred for their execution. These loans do not impact the state finances. The public appeasing projects on the other hand do not generate any revenue and the state pays an arm and a leg along with compound interest to get them off the ground.

Public debt has reached an insufferable limit in Pakistan because most of the loans taken during past one decade were for consumption purposes. Still, it would be unwise to postpone much needed infrastructure projects just because government is running on huge deficit. We will have to bear with deficit budgets for some time only if we take care that the loans are not taken for consumption purposes.  

Besides initiating new projects the state should give priority to the much needed repair of already existing infrastructure projects. Resources must be mobilized to upgrade old infrastructure. Planners should not wait for complete destruction of aged infrastructure as repair would be much less expensive than building a similar new project.

A point worth noting is the present regime provided full resources for those megaprojects that could be completed by working 24/7 within its current tenure. It did not provide enough funds for reasonable launch of Bhasha Dam that would take 15-17 years to complete if adequate funds are allocated every year. In the same way Neelum-Jehlum launched by Musharaf regime could have been completed if needed funds were provided by the state.