Senate panel informed: 98 foreign-funded projects included in FY27 PSDP

Business Recorder reported that a Senate Standing Committee on Planning, Development and Special Initiatives was told that 98 foreign-funded development projects, costing an estimated Rs8.1 trillion, are included in the Public Sector Development Programme for 2026-27. Of this total, Rs4.65 trillion is foreign assistance. The committee, chaired by Senator Quratulain Marri, met at Parliament House on Monday.

Planning Ministry officials said the Economic Affairs Division had proposed Rs425 billion for rupee cover against a demand of Rs537 billion. The National Economic Council approved a PSDP of Rs1 trillion on June 10, 2026, when overall demand stood at Rs2.9 trillion, and earmarked a mere Rs255 billion for these schemes. Officials linked the smaller sum to tight public finances and a pledge to rely on domestic financing.

The chairperson urged a review of reliance on dollar-denominated foreign loans, particularly where rupee allocations were already available. The committee also voiced serious concern over repeated delays in the M-6 Sukkur-Hyderabad Motorway, a project under consideration since 2017. Officials said Sections I and II are moving forward via a public-private partnership route, and a concession award is expected by February 2027. The Islamic Development Bank has committed USD 475 million for Sections IV and V, and the OPEC Fund for International Development has provided USD 230 million for Section III.