Senate Committee Reviews Delays and Cost Overruns in Foreign-Funded Development Projects in Balochistan and Punjab


Islamabad: A meeting of the Sub-Committee of the Senate Standing Committee on Economic Affairs convened at Parliament House to address concerns over implementation delays, cost overruns, and procurement issues in foreign-funded development projects in Balochistan and Punjab. Chaired by Senator Syed Waqar Mehdi, the committee scrutinized various aspects affecting the timely completion of these projects.



According to Senate of Pakistan, the session marked the first meeting of the Sub-Committee, which focused on projects in Balochistan and Punjab with an aim to bolster parliamentary oversight of development initiatives funded by international partners. Officials from the Ministry of Economic Affairs disclosed that most ongoing projects were financed through loans, but province-specific records were not readily available, drawing concerns from the committee about the need for accessible data to ensure effective oversight.



Officials from Balochistan revealed an allocation of approximately USD 680 million for development projects, predominantly funded by grant assistance, across eleven sectors. Despite satisfactory progress in World Bank-funded education sector projects, significant delays were noted in irrigation and livelihood programs, attributed to procedural requirements and procurement-related issues.



The committee was informed of financial implications from commitment charges due to project delays, with 14 out of 45 projects initiated since 2015 experiencing setbacks. In response to inquiries about delays linked to donor institutions, it was clarified that such issues generally arose from domestic agencies and procedural complications rather than international partners.



Discussion also highlighted cost escalations in Balochistan due to administrative procedures and law and order challenges. One project funded by an Omani grant saw a 273 percent cost increase, prompting calls for transparency in project revisions.



In Punjab, the committee reviewed 26 foreign-funded projects, where procurement issues and land acquisition delays emerged as principal concerns. The French-funded water resources project in Faisalabad faced land acquisition setbacks, affecting timely implementation. The Lahore Fort Conservation Project, supported by UNESCO, was also discussed, emphasizing cultural preservation and tourism growth.



The Sub-Committee called for comprehensive inspection reports and independent third-party evaluations to enhance transparency and accountability. The meeting concluded with directives for detailed reports on all ongoing projects and a reaffirmation of the committee’s commitment to ensuring effective parliamentary oversight and timely project completion.

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