News Detail
Event Title: Senator Quratulain Marri, Chairperson Senate Standing Committee on Planning, Development and Special Initiatives Presiding over a Meeting of The Committee at Parliament House Islamabad.
Event Date: 2026-06-15
Senate Panel Examines Development Budget Allocations Across Key Federal Ministries
The first session of budget follow-up meeting of the Senate Standing Committee on Planning, Development and Special Initiatives was held today at Parliament House, Islamabad, under the chairpersonship of Senator Quratulain Marri. The meeting was attended by Senators Shahadat Awan, Sentor Saadia Abbasi and Senator Manzoor Ahmed. Federal Minister for Planning, Development and Special Initiatives, Mr. Ahsan Iqbal, also participated in the proceedings.
At the outset, the Secretary Planning briefed the Committee on the Public Sector Development Programme (PSDP) allocations for the fiscal year 2026–2027. He informed the Committee that, in line with the Government's policy, no new development schemes had been included in the PSDP except those relating to national defence and security under the Ministries of Defence and Interior, as well as projects with foreign-funded components.
Officials of the Board of Investment (BOI) informed the Committee that Rs. 760 million had been allocated for its projects. The BOI currently has five ongoing projects, including four locally funded and one foreign-funded project. The Committee was informed that no new project would be initiated during the current fiscal year. Representatives of the Ministry of Climate Change informed the Committee that Rs. 2,477 million had been allocated for four ongoing projects.
Officials from the Ministry of Commerce briefed the Committee on the Quetta Expo Centre project and informed that a substantial amount of funding was required for its completion. Against a requirement of Rs. 3,735 million, only Rs. 89 million had been allocated in the PSDP 2026–2027. The Chairperson recommended that, upon completion of due diligence and resolution of the project's location-related issues, the requisite funds may be considered for allocation during the course of the financial year. Officials from the Ministry of Defence informed the Committee that, owing to defence and national security considerations, the Ministry had proposed 12 new schemes in addition to its 19 ongoing schemes.
The Ministry of Defence Production informed the Committee that it currently has two ongoing projects: the upgradation of Karachi Shipyard and the establishment of a Project Management Cell in Gwadar for the development of a shipyard. The Committee was informed that the Karachi Shipyard project is expected to be completed during the current fiscal year.
Representatives of the Special Investment Facilitation Council (SIFC) informed the Committee that they have one ongoing project, namely “Invest Pakistan,” initiated on the directions of the Prime Minister. The project aims to attract both domestic and foreign investment. Officials from the Establishment Division informed the Committee that they have three ongoing projects with a total allocation of Rs. 1.776 million. Two projects relate to women's hostels, while the third concerns the digitization of in-house processes and automation of the examination system of the Federal Public Service Commission (FPSC).
Addressing the Committee, Federal Minister for Planning, Development and Special Initiatives, Ahsan Iqbal highlighted the decline in development expenditure from 2.6 percent of GDP in 2018 to 0.6 percent at present and emphasized the need for increased investment in human resource development, emerging technologies, and climate resilience. He noted that while the federal development budget stands at approximately Rs. 1,000 billion, the combined provincial ADPs amount to nearly Rs. 3,000 billion. He further stated that, in the proposed PSDP, no new projects have been included except those essential for national security and defence of the country.
During the second session of the meeting, the Committee took up the matter regarding the status of ongoing development projects under the Finance Division, and provincial governments.
Officials of the Finance Division briefed the Committee that the Division is undertaking five major projects. They further informed the Committee that funds have been allocated for the upcoming financial year. However, a revision in funding requirements is likely due to a large number of certifications and a shortage of funds. Upon inquiry by the Chairperson regarding the additional financial requirement, officials stated that further funds would be needed to meet project demands.
Subsequently, the Committee was informed that the Modernization and Upgradation of Pakistan Mint (Phase-IIA) project is expected to be completed during the current year. Officials stated that approximately 80 percent of the allocated funds for the Pakistan Audit and Accounts Academy (PAAA), Islamabad, have already been utilized, while the Implementation of Online Billing Solution (Sehel) under the PFM Reforms at Federal and Provincial Levels (PC-I) project is expected to be completed next year.
While discussing the schemes relating to Provinces and Special Areas under the demand of the Finance Division, the Chairperson expressed concern over the slow pace of implementation and questioned the likelihood of their timely completion. The Chairperson emphasized the need for enhanced coordination with the provincial governments to address bottlenecks and ensure the effective and timely execution of these projects. Moreover, the Committee recommended that, in future, federal funding for provincial projects should be accompanied by a proper mechanism to monitor and assess the utilization of allocated funds.
Officials of the Ministry of Industries and Production briefed the Committee that, out of ten ongoing development projects, two are scheduled for completion during the current fiscal year. The Committee was further briefed by officials of the Ministry of Information Technology and Telecommunication that the Ministry has eleven ongoing projects. They informed the Committee that two new schemes had also been included in the PSDP, as they pertain to national security-related initiatives.
While discussing the schemes under the Ministry of Interior and Narcotics Control, the Committee was informed that eight new schemes had been included in view of the security and defence requirements of the country in addition to 21 ongoing schemes. However, the Committee expressed surprise to note that the Margalla Avenues Link Road to M-1 had also been included among the new schemes, despite not falling under the category of security and defence. The Committee observed that this inclusion was contrary to the Government’s stated policy of limiting new schemes to those related to defence and security requirements, and recommended the deletion of the said scheme.
The Chairperson Committee emphasized the need for prudent utilization of development resources and recommended that no new PSDP project should be included until existing projects are completed and adequate funding is ensured for ongoing schemes.