ECNEC approves Rs1.5 trillion in projects

By Staff Reporter

ISLAMABAD: The Executive Committee of the National Economic Council (ECNEC) on Thursday approved 27 projects worth Rs1.5 trillion in a swift two-hour meeting, prompting fears of fiscal overreach and potential breaches of IMF commitments.

The ECNEC, chaired by Deputy Prime Minister Ishaq Dar, greenlit initiatives spanning energy, infrastructure, education, and health across federal and provincial levels. The Sehat Sahulat Card scheme, however, was deferred for further review.

Dar hailed the move as a step toward “sustainable growth,” but critics slammed the rushed process, pointing to possible violations of the National Fiscal Pact, a key IMF condition for equitable resource distribution and fiscal discipline.

Among the flagship projects is the Rs363-billion Sukkur-Hyderabad Motorway, a priority for the Pakistan Peoples Party (PPP) secured in budget talks with the ruling Pakistan Muslim League-Nawaz (PML-N). Costs have soared 121 percent since 2020, with a Chinese firm now vying to build all five sections despite partial funding from the Islamic Development Bank.

In Balochistan, upgrades to the N-25 “killer road” highway were approved at Rs415 billion to boost safety and connectivity. Sindh secured Rs86 billion in federal funds for projects like the N-5 highway reconstruction and the Sindh Coastal Highway, further fueling IMF compliance debates.

Other approvals include Punjab’s tourism and laptop schemes, a Rs122.2-billion Green Pakistan Programme for environmental restoration, and Balochistan flood management projects. Federal education initiatives also got a funding boost. The rapid approvals, coupled with federal cash injections into provincial projects, have intensified scrutiny over the IMF pact. Critics highlight Sindh’s allocations as a potential breach.

Adding to concerns, the long-delayed Pakistan Raises Revenue Programme, aimed at widening the tax base, was cleared at Rs41 billion. Pakistan, battling high inflation and a fragile economy, insists the projects are vital for growth, but the lack of thorough review has alarmed observers. The rollout of this Rs1.5-trillion package will be under close watch by domestic and international stakeholders.