Deciding to conduct independent audits of all ongoing large-scale development projects, the Executive Committee of the National Economic Council (ECNEC) approved on Thursday 53 projects worth Rs 478 billion, having a foreign exchange component of Rs 172 billion, for the current fiscal year.
According to an official source, top priority was given to the infrastructure, energy and flood rehabilitation projects. However, he said the meeting submissively approved a large number of projects for the prime minister’s constituency even though they should have been simply dropped because of shortage of funds.
Many of the approved projects would face financing difficulties in the next fiscal year, as the government has set the Public Sector Development Programme (PSDP) to Rs280 billion. It is also decided that the government would not be initiating new projects during the next fiscal year and priority would be given to the programmes that were near completion.
Despite strong objections from the auditor general of Pakistan (AGP), the meeting decided to have independent private sector firms audit the ongoing large-scale projects because it would ensure transparency and there would be no conflict of interests, as an independent auditor’s report would be more reliable, the source added.
The AGP had objected there was no provision for independent auditing in the rules and it would violate official confidentiality. However, the meeting decided that the AGP would also audit the projects and the two reports together would give a better assessment.
The ECNEC meeting was chaired by Finance Minister Dr Abdul Hafeez Shaikh and was attended by the ministers for water and power, petroleum, privatisation, production, economic affairs, the Planning Commission deputy chairman, the Sindh finance minister, federal secretaries and representatives from Sindh, Balochistan, Punjab, Khyber Pakhtunkhwa, Gilgit-Baltistan and Azad Kashmir, as well as representatives of sponsoring agencies.
The meeting approved 15 foreign-funded projects worth Rs 165.5 billion, including the foreign exchange component of Rs 117 billion. Flood rehabilitation projects were given priority and 7 projects worth Rs 64.5 billion, having a foreign exchange component of Rs 28 billion, were approved.
Finance Minister Dr. Abdul Hafeez Shaikh emphasised the need for improving the monitoring and evaluation of projects to ensure transparency and best utilization of national resources.
The ECNEC also approved the 7,100 megawattt Bunji Dam project worth Rs 2.09 billion, including a foreign exchange component of Rs 34 million for feasibility study, detailed engineering design and preparation of tender documents.
The meeting revised the cost of the Mangla Dam upraising to Rs 101 billion from Rs 62 billion. Rs 3.84 billion were approved for the Shatial-Thor Nullah bypass, which would replace the submerged section of the Karakoram Highway under the Diamer Bhasha Dam.
The meeting approved the Rs 24.9 billion EPI programme of the Health Ministry, Rs 2.3 billion for the Communication System for Coastal Management of Arabian Sea programme with the Japan International Cooperation Agency’s assistance, Rs 2.15 billion for manufacturing of power plants and turbines at the Heavy Mechanical Complex, Rs 5.3 billion for repairs of 27 electric locomotives of Pakistan Railways, and Rs 23.6 billion for by the repair of highways damaged by floods, demanded by the National Highway Authority.
The first phase of the Gwadar Deep Sea Port project was also approved.
ECNEC also approved the construction of a two-lane bridge over the Indus River in Khushal Garh, District Kohat. The bridge is essential, considering the rising number of oil and gas reserves discovered in Khyber Pakhtunkhwa.
Two projects of the health sector worth Rs 26.9 billion were also approved, with a Rs 14.1 billion foreign exchange component comprising medical equipment and ambulances for District headquarters hospitals in KP.
