ISLAMABAD: The Power Division on Tuesday sought the support of the National Assembly Standing Committee on Power for exemption from the rupee cover requirement for projects funded by multilateral agencies, stating that delays in the release of rupee cover amounts create audit objections.
Testifying before the National Assembly Standing Committee on Power, presided over by MNA Babar Nawaz Khan in the absence of Chairman Muhammad Idrees — who could not reach Islamabad due to road blockades into the capital city — Secretary Power, Dr Fakhre Alam Irfan, formally floated the proposal seeking exemption from the rupee cover condition.
The Committee approved Rs 251.331 billion under the Public Sector Development Programme (PSDP) for 63 projects. Of these, 46 projects relate to the National Grid Company (NGC), two to QESCO, five to PESCO, three each to HESCO, SEPCO and HAZECO, two to MEPCO, three to LESCO, one to PPIB, and one to the Power Division. Of the total 63 projects, 44 are ongoing while 16 are new.
READ MORE: Strategic projects: PM orders ministries to speed up work
The Committee was informed that of the Rs 251.331 billion allocation, Rs 225.687 billion constitutes foreign funding, while Rs 25.644 billion will be financed through local sources.
For ongoing NGC projects, proposed funding includes Rs 150.515 billion in foreign financing and Rs 16.169 billion in local funding. An additional Rs 25.088 billion has been proposed for new projects. The total funding requirement of NGC for both ongoing and new projects stands at Rs 191.772 billion.
The Joint Secretary, Power Division, informed the Committee that for the current fiscal year, 52 development projects were recommended under the PSDP, for which Rs 90 billion was allocated in the budget. Of this amount, Rs 72 billion comprises foreign loans and Rs 18 billion local funding.
Out of the allocated Rs 90 billion, the Power Division has so far received Rs 31 billion, while Rs 47 billion remains outstanding.
The Division further stated that its total funding requirement for the current fiscal year amounts to Rs 300 billion. During the discussion, the Secretary Power Division highlighted the issue of rupee cover for development projects funded by international donors.
He noted that while development partners release the foreign component directly to contractors under their own procedures, delays occur in the approval of the rupee cover, which not only slows down project implementation but also results in audit objections.
The Secretary requested the Standing Committee to recommend to the Ministry of Planning, Development and Special Initiatives that Power Division development projects be exempted from the rupee cover requirement.
The Committee agreed and decided to propose appropriate language for a formal request to the Planning Ministry.
Copyright Business Recorder, 2026