ISLAMABAD: The Ministry of Economic Affairs said on Thursday that 43 percent of foreign-funded projects worth about $35 billion were problematic – either not progressing well or unable to deliver desired results.
At the review meeting of the National Coordinating Committee on Foreign Funded Projects, the ministry explained that it was managing an ongoing portfolio of $34.8 billion of such projects from various sectors of the economy. Of the total portfolio, $15 billion (43 pc) is considered problematic.
On top of that, the meeting was informed that “federal energy projects account for approximately $3.3bn, of which $2.3bn (or about 70pc) is rated as problematic”, an official statement said. .
No wonder the energy sector is emerging as a challenge to the country’s stability, an official said, referring to over 17 pc loss in power sector and 10 pc less recovery and 10-17 pc system loss in gas sector Is.
Economic Affairs Minister Sardar Ayaz Sadiq presided over the meeting which was attended by the heads of the implementing agencies as well as the concerned ministers and representatives of the provincial governments.
The Minister condemned the current status of energy sector projects considering their importance and impact on the overall economy and the public at large. He said energy was arguably one of the most important inputs for economic development to sustain industrial and commercial activity, but it was emerging as a challenge.
The Minister stressed the need to address the issue of problematic projects on an urgent basis, especially those facing long delays so as to expedite delivery and progress.
It was decided in the meeting to fix milestones and deliverables with time limits by the Central Ministries and Implementing Agencies for better monitoring and prevention of time and cost escalation.
Economic Affairs Secretary Mian Asad Hayauddin proposed regular follow-up monthly meetings by focal ministries with executive agencies and stakeholders for proper monitoring and speedy resolution of issues.
Published in Dawn, June 24, 2022