Key Takeaways
- The National Assembly Standing Committee on Economic Affairs Division expressed reservations about the estimated cost of the Lyari Elevated Freight Corridor (LEFC) Project.
- Committee members emphasized the need to identify the most cost-effective financing option for the project's implementation.
- Only Rs10 billion has been allocated against the K-IV Water Supply Project’s estimated requirement of Rs78 billion, raising concerns about timely completion.
The National Assembly Standing Committee on Economic Affairs Division (EAD) has expressed significant reservations over the estimated cost of the Lyari Elevated Freight Corridor (LEFC) Project. During a meeting held on Wednesday under the acting Chairmanship of MNA Dr. Mirza Ikhtiar Baig, committee members observed that the proposed financing arrangement with the Korean Exim Bank would entail a project cost nearly twice that estimated by the National Highway Authority (NHA).
The committee emphasized the need to explore viable financing mechanisms, including Public-Private Partnership (PPP) mode, and recommended that Secretary, EAD Muhammad Humair Karim convene consultations with relevant stakeholders. The proposed loan conditions stipulate that approximately 35 percent of project materials and contractors would be sourced from the Republic of Korea.
In addition to the LEFC Project, the committee also expressed deep concerns over the slow progress of the K-IV Water Supply Project. Only Rs10 billion has been allocated against its estimated requirement of Rs78 billion, which could adversely affect the timely completion and provision of an adequate water supply to Karachi.
Committee members stressed that all available financing options, including Public Sector Development Programme (PSDP) or PPP framework, should be comprehensively evaluated. They highlighted the strategic importance of both projects for Pakistan’s economic development and urged relevant ministries to present comprehensive briefings at future meetings.
The committee was informed about the progress on Tranche-III of the Central Asia Regional Economic Cooperation (CAREC) Project. Following nearly three years of litigation, the National Highway Authority has awarded the contract with completion targeted by December 2027 in accordance with the revised implementation schedule. However, concerns were raised over substantial delays and the need for strict adherence to the agreed timeline.
Committee members recommended that, if the project is not completed within the stipulated timeframe, timely negotiations should be initiated with the Asian Development Bank to secure any extension of financing on the same terms and conditions. This would safeguard national interest and ensure uninterrupted completion.
The committee’s recommendations underscore the importance of cost-effective and timely implementation of major infrastructure projects in Pakistan. The emphasis on exploring multiple financing options highlights the government's commitment to ensuring that such projects are implemented efficiently without compromising on quality or timelines.
