Ahmed Shamsur Rehman / ANI
ISLAMABAD — The Senate Standing Committee on Planning, Development and Special Initiatives, chaired by Senator Quratulain Marri, reviewed allocations for foreign-funded development projects under PSDP 2026–27 and expressed serious concern over prolonged delays in the M-6 Sukkur–Hyderabad Motorway Project.
The Committee was informed that 98 foreign-funded projects, with a total estimated cost of Rs. 8,099.94 billion, were included in PSDP 2026–27, involving foreign assistance of Rs. 4,649.2 billion. Against a demand of Rs. 537 billion for rupee cover, the Economic Affairs Division proposed Rs. 425 billion. However, the National Economic Council allocated Rs. 255 billion, citing fiscal constraints and the Government’s commitment to domestic financing.
Senator Quratulain Marri stressed effective monitoring and timely completion of projects, particularly those with more than 80 per cent physical progress. She also called for a review of dependence on foreign loans, emphasizing the need to assess borrowing costs and repayment obligations and make better use of domestic resources.
Regarding an M-1-related project, officials informed the Committee that completion was targeted for December 2026 or January 2027. The Committee stressed adherence to the timeline and timely utilization of funds.
Reviewing the M-6 Sukkur–Hyderabad Motorway Project, the Committee questioned repeated delays despite the project having been under consideration since 2017. Senator Dr. Afnanullah Khan also expressed concern over missed deadlines and called for timely implementation.
Officials informed the Committee that Sections I and II were being processed under the Public-Private Partnership (PPP) mode, with the concession award targeted for February 2027. The Asian Development Bank (ADB) was providing transaction advisory services for these sections, while financing arrangements had been secured for the remaining sections.
Financing of USD 475 million from the Islamic Development Bank (IsDB) for Sections IV and V and USD 230 million from the OPEC Fund for Section III had been secured. Bids for Sections III and IV were under evaluation, while bids for Section V were expected to open in October 2026. Contract awards for Sections III, IV and V were targeted for November and December 2026.
The Committee also discussed the participation of foreign and local companies in the bidding process and sought clarification on the reasons for delays and the status of proceedings before the Grievance Redressal Committee.
The Chairperson demanded a definite timeline for groundbreaking and directed the concerned authorities to avoid further extensions. Officials stated that the commencement of groundbreaking activities would depend on the completion of necessary approvals and formalities. The Committee emphasized transparent procurement, timely decisions and effective coordination to prevent further delays.
The meeting was attended by Senators Shahadat Awan, Saadia Abbasi, Dr. Afnanullah Khan and Jam Saifullah Khan, along with the Secretary Planning and other relevant officials.
