The government’s Central Development Working Party (CDWP) on Friday approved a revised cost of Rs. 1.74 trillion for the Dasu Hydropower Project, referring it to the Executive Committee of the National Economic Council (ECNEC) for final approval.
Chaired by Planning Minister Ahsan Iqbal, the meeting reviewed the project, emphasizing its strategic importance for Pakistan’s water and food security. The minister expressed serious concern over the massive cost escalation from Rs. 479 billion to almost Rs. 1.73 trillion due to delays and mismanagement and directed a third party audit of the revised PC-1.
The basic objective of the Dasu Hydropower Project is to expand the generation capacity of the power sector by exploiting the hydel potential of the country. Iqbal noted that Rs. 120 billion had already allocated for its land acquisition. Taking notice of WAPDA’s failure to appoint an independent project director—despite an ECNEC decision requiring the same for any project worth over Rs. 3 billion—he regretted that a professional chief financial officer had also not been appointed.
Questioning how WAPDA aimed to operate a project of this magnitude without a qualified and competent CFO, he expressed anger over the authority awarding the contract for the construction of the 66km Karakorum Highway section in foreign currency. Describing it as criminal negligence, he noted that WAPDA had made design changes and incurred expenditure without approval from either the CDWP or the ECNEC. An explanation has been sought from WAPDA prior to approval of ECNEC.
Education
The CDWP also considered a Rs. 28,000 million project to deliver quality education in Balochistan, referring it to ECNEC for further consideration. The project would be financed through $100 million from the World Bank and encompasses four key components: improving access to education; enhancing teaching quality; strengthening data-driven accountability; and building resilience to climate change and introducing emergency preparedness mechanisms.
A proposal to establish a sub-campus of Islamabad’s Quaid-e-Azam University at Sharaqpur was also approved for Rs. 3,888.147 million. The project’s land would be secured by the Government of Punjab and approval for it granted by the university’s syndicate.
Information Technology
In the Information Technology sector, three projects were approved: “Prime Minister’s Initiatives – Support for IT Startups, Specialized IT Trainings and Venture Capital (Revised)” for Rs. 5,000 million; “Strengthening of Ministry of Planning, Development & Reform in IT (2nd Revised)” worth Rs. 579.815 million; and “National Semiconductor HR Development Program (NSHRDP) Phase-I (New)” worth Rs. 4,844.219 million.
Water
In the Water sector, the project “Balochistan Water Security and Productivity Improvement Project (BWS&PIP)—Improvement of Quetta Water Supply System (New)” worth Rs. 9,835 million was referred to ECNEC. Funded by the World Bank, the project will address Quetta’s acute water shortage and is part of a broader master plan to improve water supply, benefiting the city’s approximately three million residents.
Additionally, another water-related project titled “Flood Management of Kachhi Plains under Balochistan Water Security and Productivity Improvement Project (BWSPIP)” worth Rs. 17,175 million was also referred to ECNEC. This project will be financed through IDA credit and aims to enhance flood management, improve water accessibility for productive use, and bring additional cultivable land under irrigation in Balochistan.
Other Projects
Under the Physical Planning and Housing sector, the project “Construction of Customs Complex at Sost (Part A) and Construction of Customs Digital Enforcement Stations by FBR along rivers Indus, Hub and in Balochistan (Part B) (Revised)” worth Rs. 16,101.320 million was referred to ECNEC.
In the Transport and Communications sector, the project “Sindh Flood Emergency Rehabilitation Project (SFERP) Phase-II” worth Rs. 12,261 million was referred to ECNEC. The project will be financed through $40 million in foreign funding from the World Bank and $4 million by the Government of Sindh. It aims to rehabilitate 145.94 kilometers of roads in four districts of Sindh, rescue stations, and to enhance disaster preparedness and emergency response capacities.
The CDWP reiterated its commitment to fast-tracking development initiatives that are critical for national perspective and inclusive growth, while ensuring transparency, efficiency, and sustainability in project execution. “Pakistan’s development budget has shrunk considerably during 2018-22 as a result every rupee is a sacred trust and must be guarded and spent with utmost responsibility to achieve the desired development goals,” Iqbal added.