Home Ministry of affairs 43% of foreign-funded projects deemed “problematic” – Pakistan

43% of foreign-funded projects deemed “problematic” – Pakistan

0

ISLAMABAD: The Ministry of Economic Affairs said on Thursday that 43% of foreign-funded projects worth about $35 billion were problematic – either not progressing well or unable to deliver desired results.

At a review meeting of the National Coordinating Committee on Foreign Funded Projects, the ministry said it was managing an ongoing $34.8 billion portfolio of such projects in various sectors of the the economy. “Of the total portfolio, $15 billion (43%) is considered problematic,” he added.

In addition to this, the meeting was informed that “the share of federal energy projects is approximately $3.3 billion, of which $2.3 billion (or nearly 70%) is considered problematic,” according to an official statement.

No wonder the energy sector is emerging as a challenge to the country’s stability, an official said, referring to more than 17% losses and 10% short recoveries in the energy sector. electricity and 10 to 17% system losses in the gas sector.

Economic Affairs Minister Sardar Ayaz Sadiq chaired the meeting which was also attended by relevant ministers and representatives of provincial governments, in addition to heads of implementing agencies.

The Minister lamented the current status of energy sector projects given their importance and impact on the global economy and the general public. He said energy was arguably one of the most important inputs for economic growth to support industrial and commercial activities, but it was becoming a challenge.

The minister underscored the need to urgently address the issue of problematic projects, especially those experiencing chronic delays, in order to speed up disbursements and progress.

The meeting decided to set milestones and deliverables with timelines by focal ministries and executing agencies for better monitoring and prevention of time and cost overruns.

Economic Affairs Secretary Mian Asad Hayauddin proposed regular monthly follow-up meetings by focal ministries with implementing agencies and stakeholders for proper follow-up and prompt resolution of issues.

Posted in Dawn, June 24, 2022