ISLAMABAD: The Ministry of Planning, Development and Special Initiatives took serious note of the low fund utilization over the execution of the Power Division projects and hydel power projects being executed by the Water Resources Division, with a combined earmarked cost of Rs 1.7 trillion.
Federal Minister for Planning, Development, and Special Initiatives Ahsan Iqbal directed the Secretaries of the Ministry of Planning, Finance, Economic Affairs Division (EAD), Power, and the Ministry of Water Resources to jointly identify bottlenecks, whether financial, technical, or administrative, and resolve them on a fast-track basis through coordinated action and engagement with all relevant stakeholders.
Federal Minister for Planning, Development, and Special Initiatives Prof Ahsan Iqbal chaired a high-level review meeting on Monday to assess the progress of critical Public Sector Development Programme (PSDP) projects within the Power and Water Resources Divisions.
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The meeting was attended by the Secretary of Planning, Chief Economist Dr Imtiaz Ahmad, Member IRC, and senior officers from Power, EAD, and Finance Divisions, along with senior officials from the relevant line ministries.
A total of thirty-seven critical power sector projects, with a combined approved cost of Rs 1.7 trillion, were reviewed. Of this amount, Rs 1.1 trillion had been spent as of June 2025, while the remaining Rs 492.4 billion is projected as throw-forward expenditure.
For the fiscal year 2025-26, the budget allocation stands at Rs 104.7 billion. In addition, an extra funding requirement of approximately Rs 175 billion was projected during the first quarter of the current fiscal year.
The Minister directed the Power Division to prioritise important near-completion projects, rationalise future financing, and put in place a realistic three-year execution framework along with financial requirements from the PSDP to ensure the timely delivery of strategically important projects.
The Minister emphasized that these sectors account for a significant share of the development budget and directed officials to accelerate progress on priority projects.
To ease fiscal pressure, the Minister recommended focusing on completing ongoing projects nearing completion rather than allocating funds to new projects with no physical progress, except in cases of overriding necessity.
“The objective is to reduce the throw-forward and complete priority projects within defined timelines,” the minister said, adding that delays not only escalate costs but also defer the economic benefits of infrastructure, including improved energy availability, industrial productivity, and investor confidence.
He directed the Power Division to identify and prioritize the most critical projects and to propose the minimum funding required for the next three years, including a year-wise breakdown.
The review covered several major power sector initiatives, including the 2×660MW coal-fired power plant at Jamshoro with an estimated cost of Rs177 billion, the Power Distribution Enhancement Investment Programme (Tranche-I) Advanced Metering Infrastructure project costing Rs16.9 billion, Electricity Distribution Efficiency Improvement Projects in MEPCO and HESCO valued at Rs10.2 billion and Rs8.1 billion respectively, the 500kV Matiari–Moro–Rahim Yar Khan transmission line estimated at Rs188.5 billion, and an additional Electricity Distribution Efficiency Improvement Project costing Rs11.7 billion.
Major hydel and transmission-related projects also came under discussion, including the Dasu transmission lines, Ghazi-Barotha Hydropower Project, the upgradation and extension of NTDC’s telecommunications and SCADA system at the National Power Control Centre, and the evacuation of power from the 2,160MW Dasu Hydropower Project (Stage-I).
A disciplined three-year rolling plan, the Minister said, would help the government to avoid the accumulation of incomplete projects, contain fiscal pressures, and ensure public investments into tangible improvements in energy security and economic growth.
The meeting concluded with a mandate for the Secretary Power Division to resolve existing fund utilization issues through closer coordination with the Secretaries of Finance and Planning. This disciplined approach aims to ensure that public investments are translated into operational assets and energy security without further cost escalations or delays.
Copyright Business Recorder, 2025
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