In a move that has raised eyebrows among economists and policymakers, Pakistan’s Executive Committee of the National Economic Council (ECNEC) greenlit 27 major development projects worth Rs1.5 trillion in a remarkably short two-hour meeting on Thursday. The approvals, spanning infrastructure, energy, education, and health sectors, have sparked concerns over due diligence and compliance with International Monetary Fund (IMF) conditions.
Key Projects Approved Amid Rapid Decision-Making
Chaired by Deputy Prime Minister Ishaq Dar, the ECNEC meeting saw the approval of high-value schemes, including:
Sukkur-Hyderabad Motorway (M-6) – Rs363 billion (a 121% cost increase from its 2020 estimate).
Karachi-Quetta-Chaman Highway (N-25) – Rs415 billion for three sections, addressing one of Pakistan’s most dangerous roads.
Green Pakistan Programme – Rs122.2 billion for forest restoration and biodiversity.
Flood management in Balochistan’s Kachhi Plains – Rs17 billion.
Lahore’s sewerage system upgrade – Rs49.3 billion.
Notably, several Sindh-centric projects were approved, despite potential violations of the National Fiscal Pact under the IMF program. These include federal funding for provincial initiatives, raising questions about fiscal discipline.
Controversies and Cost Escalations
The Sukkur-Hyderabad Motorway has been approved four times since 2020, with costs ballooning from Rs165 billion to Rs363 billion—a trend critics argue reflects poor planning. Meanwhile, the Karachi-Quetta-Chaman Highway (N-25), notorious for fatal accidents, will see Rs183 billion allocated for its Karachi-Quetta section alone.
Additionally, federal funds were committed to provincial projects, such as:
Rs86 billion for Sindh government schemes (linked to PPP-PML-N budget negotiations).
Rs27 billion for Punjab CM Maryam Nawaz’s Laptop Scheme.
Federal co-funding for roads in Punjab and Sindh, breaching IMF-mandated fiscal decentralization.
IMF Compliance in Question
The rapid approvals and federal encroachment into provincial domains contradict the National Fiscal Pact, which restricts central funding for provincial projects under IMF agreements. Analysts warn that such moves could complicate Pakistan’s ongoing bailout program, as the IMF has previously stressed fiscal discipline and reduced federal interference.
What’s Next?
While the government defends the approvals as critical for economic growth, critics demand greater transparency and adherence to IMF conditions. With cost overruns and rushed decisions, the real test will be whether these projects deliver tangible benefits or further strain Pakistan’s fragile economy.
As debates intensify, one thing is clear: Pakistan’s development ambitions are moving fast—but at what cost?
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