The Economic Coordination Committee (ECC) of the Cabinet has approved non-lapsable funds worth Rs 20 billion for the Karachi and Hyderabad Urban Infrastructure Development Packages.
The funds will be channelled through the Pakistan Infrastructure Development Company Limited (PIDCL), according to sources cited by Business Recorder.
The Ministry of Housing and Works briefed the ECC that the Prime Minister had directed preparation of development packages worth Rs 15 billion for Karachi and Rs 5 billion for Hyderabad to meet urgent infrastructure needs. These projects are included in the Public Sector Development Programme (PSDP) 2024–25 with dedicated allocations.
PIDCL, a company registered under Section 32 of the Companies Act, 2017, was initially responsible for executing the Green Line project in Karachi. The company’s mandate has since been expanded to cover projects nationwide and to manage various schemes, including those previously handled by the Public Works Department.
PIDCL has been assigned to implement the Karachi and Hyderabad packages, listed under PSDP numbers 222 and 223 respectively, as per a Ministry of Planning letter dated April 15, 2025.
A summary requesting a Technical Supplementary Grant (TSG) of Rs 15 billion for Karachi and Rs 5 billion for Hyderabad was moved to the ECC on May 20, 2025. It also sought permission to deposit the funds in non-lapsable accounts to ensure timely implementation.
While the Finance Division agreed to the TSG, it initially gave no advice on the non-lapsable status. A follow-up request was sent to the ministry.
The Ministry of Planning, in a letter dated May 23, 2025, advised the Finance Division to reallocate Rs 20 billion from its development projects to the Ministry of Housing and Works. In response, on May 26, 2025, the Finance Division stated it had no objection to surrendering Rs15 billion from the Karachi Urban Infrastructure Development Package (PSDP 222) and Rs5 billion from the Hyderabad Package (PSDP 223), under Demand No. 109, in favour of the Ministry of Housing and Works under Demand 130 – Capital Outlay on Civil Works.
The ECC was asked to approve the allocation of these surrendered funds and allow PIDCL to deposit them in non-lapsable accounts for implementation purposes. During the discussion, the Finance Division endorsed the proposal but clarified that only Rs 10 billion would be allocated from the surrendered PSDP funds for the Karachi package.
The remaining Rs 5 billion is to be arranged by the Ministry of Housing and Works through internal budget adjustments.
The ECC was also informed that the Steering Committee on Sustainable Development Goals Achievement Programme, in its meeting on June 2, 2025, had agreed that PIDCL would carry out SDG-related projects under the same model used by the now-defunct Pak PWD.
