Islamabad: A meeting of the National Assembly Standing Committee on Economic Affairs Division, chaired by Dr. Mirza Ikhtiar Baig, MNA, raised concerns about the slow progress of the K-IV Water Supply Project and the Lyari Elevated Freight Corridor Project. The committee emphasized the need for comprehensive briefings and financially prudent solutions for these projects to avoid delays and ensure cost-effective implementation.

According to National Assembly of Pakistan, the committee expressed deep concerns over the substantial funding gap for the K-IV Water Supply Project, with only Rs. 10 billion allocated against its Rs. 78 billion requirement. This shortfall could delay the project’s completion, impacting Karachi’s water supply. The committee recommended that the Ministry of Water Resources and the Project Director provide a detailed briefing on the project’s current status and financial needs.

The committee also noted the disparity in cost estimates for the Lyari Elevated Freight Corridor Project between the proposed financing arrangement with the Korean Exim Bank and the National Highway Authority (NHA). The committee urged the Karachi Port Trust to explore viable financing mechanisms, including Public-Private Partnerships, to develop a mutually agreed and cost-effective financing model, considering all available options.

Additionally, the committee was briefed on the progress of Tranche-III of the Central Asia Regional Economic Cooperation Project, with a completion target of December 2027. Concerns were raised about the delays, and the committee stressed the need for adherence to the timeline, recommending timely negotiations for financing extensions if necessary.

The meeting also addressed international and regional economic developments, highlighting the impact of the Middle East conflict on Pakistan’s economy, including increased oil prices and inflationary pressures. The Ministry of Economic Affairs informed that Pakistan’s oil import bill had surged, and inflation had accelerated, prompting the State Bank of Pakistan to raise the policy rate. The committee was apprised of Pakistan’s participation in international and regional economic organizations, emphasizing its role in contributing to sustainable development and regional connectivity.

The meeting was attended by several MNAs, including Dr. Mirza Ikhtiar Baig, Mr. Muhammad Tufail, and others, alongside officials from the Ministry of Economic Affairs and the Economic Affairs Division.