Senate panel seeks reports on delayed $4.6bn foreign-funded projects in Punjab, Balochistan

A Senate sub-committee on Economic Affairs, chaired by Syed Waqar Mehdi, has directed federal and provincial authorities to submit detailed reports within one week after being informed that 24 foreign-funded development projects worth more than $4.6 billion in Punjab and Balochistan are facing delays, leading to cost overruns and additional commitment charges, according to a news report. 

The committee reviewed the implementation of externally financed projects, focusing on procurement delays, monitoring, cost escalations and accountability.

Officials told the committee that delayed projects continue to incur 0.25% commitment charges, increasing the financial burden alongside rising project costs.

Expressing dissatisfaction, the convener criticised the Ministry of Economic Affairs for failing to provide an immediate province-wise breakdown of grants and loans, saying such information should be readily available for effective parliamentary oversight.

Balochistan officials informed the committee that the province has received around $680 million for development projects, with nearly 95% of the funding provided as grants for education, water resources and livelihood programmes.

However, 14 of the 45 foreign-funded projects launched in the province since 2015 have been delayed. While World Bank-funded education projects are progressing, irrigation, agriculture and livelihood schemes, including the Gwadar-Lasbela Livelihood Programme, remain behind schedule.

Officials attributed the delays to lengthy procurement procedures, donor compliance requirements, formation of procurement committees and litigation.

Senator Rubina Khalid said implementation failures stemmed largely from domestic institutions rather than development partners and called for independent third-party evaluations, field inspections and digital monitoring of project progress.

The committee was also informed that an Omani grant-funded road project underwent a 273% cost revision to around Rs2.1 billion, mainly because of security challenges. Another major project in Balochistan expanded from about Rs16 billion to nearly Rs65 billion after being redesigned following the 2022 floods.

Members also raised concerns over allegations regarding the use of unauthorised Iranian bitumen in infrastructure projects and directed authorities to ensure regular laboratory testing of construction materials.

Reviewing Punjab's portfolio, officials said the province is implementing 26 foreign-funded projects worth about $3.96 billion, of which 10 are delayed due to procurement issues and land acquisition problems.

Concluding the meeting, the committee directed all executing agencies to submit project-wise reports covering implementation progress, procurement bottlenecks, inspection findings, cost revisions, land acquisition status, monitoring observations and the officials responsible for delays, stressing that negligence should be identified and accountability ensured where public funds have been affected.