Karachi, Hyderabad uplift packages: ECC approves Rs20bn non-lapsable funds thru PIDCL

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has approved non-lapsable funds of Rs 20 billion under Karachi and Hyderabad Urban Infrastructure Development Packages through Pakistan Infrastructure Development Company Limited (PIDCL), well-informed sources told Business Recorder.

Ministry of Housing & Works has briefed the ECC that the Prime Minister of Pakistan had directed that the special development packages for Karachi at a cost of Rs.15 billion and Hyderabad at a cost of Rs.5 billion be prepared to address the pressing development demands of both the cities as federal government initiatives, which were duly reflected in federal PSDP 2024-25 with substantial allocations.

In this regard it was stated that PIDCL was a company registered under Section 32 of the Companies Act 2017 and was recently transferred from M/oPD&SI. The company was established to execute Green Line project in Karachi. PIDCL’s mandate had been expanded to cover entire Pakistan and had been entrusted execution of special packages and some of erstwhile PWD projects, without concomitant wherewithal. PIDCL had also been assigned the task for execution of Development Schemes Hyderabad Package (PSDP number 223) and Karachi Package (PSDP number 222) vide Ministry of Planning, Development and Special Initiatives letter of April 15, 2025.

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A summary in this regard was moved to ECC on May 20, 2025 through M/o Finance with the request for: (i) Technical Supplementary Grant (TSG) of Rs.15 billion for Karachi and Rs.5 billion for Hyderabad; and (ii) to keep the fund available for timely execution, the PIDCL may be allowed for depositing the said fund in non-lapsable accounts. Finance Division had issued concurrence for the TSG. However, since no advice was tendered on non-lapsability, another request has been sent to Ministry of Finance.

Ministry of Planning Development and Special Initiatives, in its letter of May 23, 2025 replied to the Finance Division that Finance Division may take further action for surrender of revised allocation of Rs.20 billion of projects PSDP number 223 and PSDP number 222 reflecting under Finance Division as per revised PSDP in favour of Ministry of Housing and Works for further processing the case as per procedure. In the light of response received from PD&SI Division, Finance Division, in a letter of May 26, 2025 had agreed that Finance Division does not have any objection to surrender an amount of Rs.15 billion from PSDP Project titled Karachi Urban Infrastructure Development Package, PSDP number 222 and Rs.5 billion for the project tilted: Hyderabad Urban Infrastructure Development Package, PSDP number 223 from Finance Division’s Demand No.109-Other Development Expenditure, in favour of Ministry of Housing and Works demand 130-Capital Outlay on Civil Works.

Approval of the ECC was solicited for the following: Ministry of Housing and Works may be allocated the surrendered funds amounting to Rs.15 billion from PSDP project, titled: Karachi Urban Infrastructure Development Package, and Rs.5 billion from the project titled: Hyderabad Urban Infrastructure Development Package through Technical Supplementary Grant from Finance Division’s Demand No. 109-Other Development Expenditure, in favour of Ministry of Housing and Works’ Demand 130- Capital Outlay on Civil Works; and to keep the fund available for timely execution, the PIDCL may be allowed for depositing the said fund in non-lapsable accounts.

During the ensuing discussion, Finance Division endorsed the proposal with the condition that out of total requested funds of Rs. 15 billion for the Karachi Urban Infrastructure Development Package, Rs. 10 billion will be allocated to the Ministry of Housing and Works from the surrendered funds of PSDP project No 222, while the remaining Rs. 5 billion will be arranged by the Ministry of Housing and Works through internal adjustment of their existing budgetary resources. It was also explained that the matter had already been discussed by the Steering Committee on Sustainable Development Goals Achievement Programme in its meeting held on June 2, 2025, and it had been decided that the PIDCL will execute the SDG projects under the same arrangements as was done by the erstwhile Pak PWD.

Copyright Business Recorder, 2025