Islamabad: The Senate Standing Committee on Planning, Development and Special Initiatives convened at Parliament House under the leadership of Senator Quratulain Marri to assess allocations for foreign-funded development projects in the upcoming Public Sector Development Programme (PSDP) 2026-27. Key areas of focus included rupee cover, reliance on foreign borrowing, project completion timelines, and the use of domestic resources.

According to Senate of Pakistan, the Committee was informed that 98 foreign-funded projects, totaling an estimated cost of Rs. 8,099.94 billion, are part of the PSDP 2026-27. These projects involve foreign assistance amounting to Rs. 4,649.2 billion. Despite a demand of Rs. 537 billion for rupee cover, the Economic Affairs Division proposed Rs. 425 billion after discussions with relevant ministries, divisions, and donor agencies. However, the National Economic Council allocated only Rs. 255 billion for these projects due to fiscal constraints and the Government’s commitment to domestic financing.

The Chairperson of the Committee sought clarification on projects expected to be completed this financial year, with officials indicating that projects with over 80 percent physical progress are anticipated to finish within the year. Emphasis was placed on effective monitoring and timely implementation to meet projected targets.

The Chairperson highlighted the need to reconsider reliance on foreign loans, especially dollar-denominated financing, when domestic resources are available. The financial implications of foreign borrowing should be carefully assessed, and the Government should explore utilizing local resources to reduce dependency on external loans.

The Committee also reviewed the M-1 project with officials stating completion is targeted for December 2026 or January 2027. The Committee stressed adherence to the timeline and timely fund utilization.

Concerns were raised about delays in the M-6 Sukkur-Hyderabad Motorway Project. Officials reported progress under the Public-Private Partnership mode and financing secured from international partners, including the Islamic Development Bank and the OPEC Fund. The Chairperson questioned postponements and stressed the need for timely implementation, transparency, and effective coordination to avoid further delays.

The meeting included Senators Shahadat Awan, Saadia Abbasi, Dr. Afnanullah Khan, and Jam Saifullah Khan, along with the Secretary Planning and other officials.