USD4.6bn foreign-funded projects: Senate panel orders report on delays, cost overruns
ISLAMABAD: A Senate sub-committee on Economic Affairs on Tuesday ordered federal and provincial authorities to submit comprehensive reports within one week after being informed that 24 foreign-funded development projects worth more than USD 4.6 billion in Balochistan and Punjab have suffered implementation delays, triggering cost overruns, commitment charges, and accountability concerns.
The meeting, chaired by Syed Waqar Mehdi, reviewed the implementation status of externally financed projects in Balochistan and Punjab, focusing on procurement bottlenecks, monitoring failures, cost escalations and accountability mechanisms.
The committee was informed that delayed projects continue to attract 0.25 percent commitment charges, adding to the financial burden alongside rising project costs.
Questioning the Ministry of Economic Affairs over the financing profile of provincial projects, the convener expressed dissatisfaction that officials could not immediately provide province-wise data distinguishing grants from loans, stressing such information should always be readily available for effective parliamentary oversight.
Officials from Balochistan informed the committee that around USD 680 million had been allocated for development projects in the province, with nearly 95 percent comprising grants, covering education, water resources and livelihood programmes.
However, several projects launched between 2015 and 2018 remain incomplete despite having implementation periods of three to four years.
While education projects financed by the World Bank were progressing satisfactorily, irrigation, agriculture, and livelihood schemes, including the Gwadar-Lasbela Livelihood Programme, faced significant delays.
Officials attributed implementation slippages to lengthy procurement procedures, donor compliance requirements, formation of procurement committees, and litigation. Out of 45 foreign-funded projects initiated in Balochistan since 2015, 14 have been delayed.
Rubina Khalid said implementation shortcomings largely originated from domestic institutions rather than development partners, calling for independent third-party evaluations, field inspections and digital evidence of project progress.
The committee was informed that one Omani grant-funded road project recorded a 273 percent cost revision to around Rs2.1 billion, mainly due to security challenges. Another major Balochistan project expanded from about Rs16 billion to nearly Rs65 billion after redesign following the 2022 floods.
The panel also raised concerns over allegations regarding the use of unauthorised Iranian bitumen in infrastructure projects and directed authorities to ensure regular laboratory testing of construction materials.
Reviewing Punjab’s portfolio, officials said the province is implementing 26 foreign-funded projects worth about USD 3.96 billion, with 10 projects facing delays mainly due to procurement complications and land acquisition issues.
Concluding the meeting, the convener directed all executing agencies to submit project-wise reports detailing implementation status, inspection findings, procurement issues, cost revisions, monitoring observations, land acquisition status and officials responsible for delays, stressing that negligence must be identified and accountability ensured where public resources have been adversely affected.
Copyright Business Recorder, 2026