The Executive Committee of the National Economic Council (Ecnec) has given the green light to 13 development projects valued at Rs1,275.714 billion.
The projects span several critical sectors, including transport, communications, railways, space technology, and public infrastructure.
A key project approved, the Lahore-Sahiwal-Bahawalnagar Motorway, has seen its cost rise by 65% from Rs264 billion to Rs436 billion. Though the project will primarily benefit Punjab, the federal government is continuing with it despite restrictions on federally funded provincial projects under the National Fiscal Pact.
The Punjab government has been asked to finance at least half of the motorway’s cost, but a final decision is still pending.
ECNEC was informed that 90% of the land acquisition for Package-I of the motorway is complete. The National Highway Authority (NHA) will begin construction from Lahore Ring Road to the Raiwind-Kasur Road Interchange using Public Sector Development Program (PSDP) funds. However, NHA will re-evaluate the project alignment to better integrate it with existing motorways.
In another major approval, ECNEC sanctioned the Pakistan Optical Remote Sensing Satellite (PRSS-O2) project at a revised cost of Rs19.5 billion, with 85% of funding from a concessional Chinese loan. The satellite will be capable of capturing high-resolution Earth imagery, boosting Pakistan’s remote sensing capabilities.
The Sindh Flood Emergency Rehabilitation Project (SFERP) Phase-I also saw its cost revised upwards to Rs88.4 billion, an increase of Rs22.4 billion. This project aims to restore vital infrastructure and improve food security in the aftermath of flooding, with the World Bank providing a $288 million loan. ECNEC has called for detailed documentation and transparency in fund usage.
The Rawalpindi Ring Road project saw its cost rise by 40% to Rs33 billion. Originally approved in 2021, the project has expanded in scope, with increased costs due to design changes such as additional culverts, underpasses, and bridges.
Other projects approved by ECNEC include the procurement of 820 railway bogie wagons and 230 passenger coaches, with the project cost rising by 129% to Rs71 billion.
The Multan-Vehari Road rehabilitation project was approved at Rs12.9 billion, and the Green Line Bus Rapid Transit (BRT) system received administrative approval for clearance of liabilities before its transfer to the Sindh government.
Finally, ECNEC allocated Rs28 billion to enhance Public-Private Partnerships, urging the Sindh government to complete all activities by June next year to avoid further financial charges.
The meeting, chaired by Deputy Prime Minister (DPM) and Foreign Minister Senator Ishaq Dar, was attended by relevant provincial ministers, federal secretaries, and other senior officials.
During the meeting, DPM Dar emphasized the government’s ongoing commitment to sustainable development, inter-provincial connectivity, and economic transformation across the country.
