Foreign-funded project portfolio halved

The government told the Senate Standing Committee on Planning, Development and Special Initiatives that it has cut the foreign-funded project portfolio from Rs537 billion to Rs255bn, citing a shortage of local-currency matching funds this fiscal year. Dawn reported that Planning Secretary Dr Tahir Noor briefed the panel, which was chaired by Senator Quratulain Marri. The session reviewed allocations under PSDP 2026-27, with officials telling members that most projects were expected to be completed during the year.

Noor also said work on the Sukkur-Hyderabad (M6) Motorway is expected to start within months, since foreign financing of $705 million is now available. The committee heard that 98 foreign-funded projects carry an estimated total cost of Rs8.1 trillion within the current PSDP, with foreign assistance pegged at Rs4.65tr.

The National Economic Council approved a PSDP of Rs1tr on June 10, against total demand of Rs2.9tr, while the Economic Affairs Division had suggested Rs425bn in rupee cover for foreign-funded work instead of the Rs537bn sought. The panel urged greater reliance on domestic resources and rupee allocations, noting that dollar borrowing brings interest and repayment obligations. Members also called for adequate rupee cover to prevent delays, alongside transparency and prudent financial management.