A sub-committee of the Senate Standing Committee on Economic Affairs has called for a comprehensive report on delayed foreign-funded projects, emphasizing enhanced monitoring and accountability. The meeting, held at Parliament House in Islamabad, was convened by Senator Syed Waqar Mehdi.
First Meeting Focuses on Balochistan and Punjab
The sub-committee held its inaugural session to examine cost overruns, implementation delays, commitment charges, procurement issues, and accountability mechanisms related to foreign-funded development projects. Senator Mehdi noted that proceedings would primarily concentrate on projects in Balochistan and Punjab, reaffirming the committee's commitment to strengthening parliamentary oversight of initiatives financed through international development partners.
Senator Mehdi sought details on the financing structure of projects in Balochistan, inquiring whether they were executed through grants or loans. Officials from the Ministry of Economic Affairs reported that most major ongoing projects were loan-financed, but complete province-wise records were not immediately available. The convener stressed that such information should be readily accessible for effective oversight.
Balochistan Projects: $680 Million Allocated
Representatives from the Balochistan government informed the committee that approximately USD 680 million had been allocated for development projects in the province, including around Rs186 billion, with nearly 95 percent comprising grant assistance. Projects span eleven sectors, with education, water resources, and livelihood programs receiving the largest investments.
Officials explained that several projects initiated between 2015 and 2018 remained incomplete despite a typical completion period of three to four years. While World Bank-funded education projects progressed satisfactorily, significant delays occurred in irrigation, water resources, agriculture, and livelihood programs, including the Gwadar-Lasbela Livelihood Programme. Delayed projects incurred commitment charges of 0.25 percent, leading to substantial financial implications and cost escalation.
Procurement-related delays, including formation of procurement committees, advertisement publication, and procedural requirements, contributed to implementation setbacks. Out of 45 foreign-funded projects initiated since 2015, 14 experienced delays, four were completed, and the rest continued under implementation.
Delays Not Solely Due to World Bank
Responding to Senator Rubina Khalid's query, the Senior Joint Secretary of the Ministry of Economic Affairs clarified that while procedural discussions with development partners occur during negotiations, implementation bottlenecks generally arise after loan agreements are signed, linked to executing agencies, procurement complications, and litigation rather than donor institutions. Senator Khalid emphasized that attributing delays solely to the World Bank would be inaccurate, noting that shortcomings largely originate from domestic institutions. She stressed that underlying causes must be correctly identified to facilitate timely project completion, particularly in Balochistan.
The Additional Chief Secretary of Balochistan reported that administrative procedures after annual development approvals caused delays, citing examples where revised project costs substantially increased. One Omani Grant-funded project saw a 273 percent revision, raising total cost to about Rs2.1 billion. Senator Mehdi questioned the substantial increase, emphasizing the need for complete transparency and proper endorsement by all authorities.
Senator Khalid stressed that Gwadar projects deserve priority given the region's strategic importance and Pakistan's broader connectivity objectives, urging completion without unnecessary procedural delays.
Water Resources and Irrigation Projects
The committee reviewed foreign-funded water resources and irrigation projects in Balochistan. Officials reported that one project, originally scheduled for completion in June 2026, faced delays of six to twelve months, while another major project experienced substantial cost escalation due to redesign after the devastating 2022 floods. The Additional Chief Secretary noted that one of the province's largest projects expanded from approximately Rs16 billion to nearly Rs65 billion following flood-related redesign.
Nine major projects are under implementation, with overall physical progress at about 52 percent. Dam construction remains the principal component and the government's highest priority. The Additional Secretary of the Ministry of Economic Affairs informed the committee that joint review meetings with provincial authorities are conducted periodically. Senator Khalid reiterated that documentary submissions alone cannot guarantee transparency and recommended independent third-party evaluations for all major foreign-funded projects to eliminate conflicts of interest and improve accountability.
Senator Khalid remarked that delayed implementation increases project costs and imposes additional financial liabilities through commitment charges and mark-up payments. She urged executing agencies to submit photographic and video evidence demonstrating actual progress, leveraging modern digital technologies, rather than relying exclusively on written reports. The convener directed all executing agencies to furnish complete site inspection reports with documentary evidence within one week.
Quality Control and Flood Assistance
The committee discussed quality control mechanisms for construction materials used in infrastructure projects. Senator Khalid noted that if inferior materials are used, development financing objectives would remain unfulfilled despite substantial public expenditure. The committee also reviewed the Federal Emergency Flood Assistance Programme, particularly its irrigation and agriculture components.
Reaffirming commitment to Balochistan's development, Senator Khalid stated that the province remains a national priority, assuring provincial authorities that Parliament will support measures to expedite projects and resolve bottlenecks. The convener directed the provincial government to submit comprehensive reports on all ongoing foreign-funded projects within one week.
Punjab Projects: $3.96 Billion Loan Portfolio
Following Balochistan, the sub-committee reviewed foreign-funded development projects in Punjab. Officials from the Punjab government reported that the province is implementing 26 foreign-funded projects with an overall loan portfolio of approximately US$3.96 billion. Out of 26 active projects, ten experienced implementation delays, four were completed, and the rest progressed at different stages. The committee received a briefing on a major French-funded water resources project in Faisalabad aimed at improving canal water management and ensuring safe water availability.
The committee also received a comprehensive briefing on the UNESCO-supported Lahore Fort Conservation and Heritage Restoration Project. Health sector projects financed through foreign assistance were progressing satisfactorily without significant delays.
Reviewing the Jalalpur Irrigation Project, the convener questioned why land acquisition issues had not been resolved before implementation. He directed all executing agencies and project directors to submit comprehensive reports within one week, covering field inspection reports, implementation progress, monitoring observations, reasons for delays, procurement issues, land acquisition status, and departmental recommendations.
Digital Monitoring and Field Verification
Officials from the Ministry of Economic Affairs informed the committee that monthly coordination meetings and a Smart Monitoring Dashboard are used to track project milestones and progress. The convener welcomed the initiative but emphasized that digital monitoring must be complemented by effective field verification to ensure transparency and timely completion. In his concluding remarks, Senator Mehdi reaffirmed the committee's resolve to strengthen parliamentary oversight of all foreign-funded development projects.
