Kakar assures Baqar of Centre’s support for Sindh’s major projects

In his meeting with caretaker prime minister Anwaar-ul-Haq Kakar at the PM House Islamabad, Sindh interim chief minister Justice (retd) Maqbool Baqar discussed five important development projects of the province, urging Kakar to issue the necessary directives to remove the bottlenecks stopping the projects from being completed and launched.

A statement issued by the CM House on Monday said Baqar apprised Kakar about the impediments that have emerged in five projects that can be removed with the caretaker PM’s interventions. Kakar’s response was not only positive but also quite supportive and helpful, according to Baqar.

KCR project

Baqar informed Kakar that the federal government needs to provide a sovereign guarantee for the Karachi Circular Railway (KCR) project loan, demonstrating a strong commitment at national level.

“The sovereign guarantee adds a layer of financial security, and assurance for investors and stakeholders involved in the project,” he said, and requested that the Centre sign a framework agreement so that the project can move ahead under the China-Pakistan Economic Corridor project.

He also requested that the Pakistan Railways be directed to hand over the land along the right of way for the KCR because it is critical for the success of the project. Kakar assured him that he would resolve the issue of the provincial government’s important projects.

Red Line project

Discussing the Red Line bus rapid transit (BRT) project, Baqar informed the interim PM that the project is being implemented with the assistance of the Asian Development Bank (ADB).

The project’s PC-I was cleared by the Central Development Working Party on April 15, 2019, and approved by the Executive Committee on National Economic Council (Ecnec) on August 29, 2019, at a cost of Rs78.38 billion.

The loan agreement was signed in June 2020 between the Sindh government and the ADB, and became effective in October 2020.Baqar said that the price adjustment/escalation formula proposal with a cost impact of Rs6.31 billion was approved by the Trans Karachi Board and the provincial cabinet.

The Sindh government forwarded the proposal to Ecnec / the Planning Commission for an anticipatory approval, which has been pending for more than two months. Baqar requested that Ecnec / the Planning Commission be advised to issue the approval at the earliest, allowing the BRT project company Trans Karachi to cover losses, resume work on site and, subsequently, complete the project on time. Kakar made the assurance of discussing the matter with the Planning Commission.

K-IV project

Discussing the K-IV project, Baqar said that a dilapidated infrastructure and a weak distribution system has resulted in widening the gap between the supply and consumption of water, which is bound to pile miseries upon people.

He said that the alarming situation persuaded the federal government to undertake the Greater Karachi Bulk Water Supply Scheme K-IV, Phase-I (260 MGD) project through the Water & Power Development Authority.

The revised PC-I was already been approved by Ecnec in 2022 at Rs126.41 billion. “Originally scheduled to be completed by March 2023, the project has been delayed for multiple reasons, and is now planned to be completed by October 2024,” said Baqar.

Keeping in view the urgency to complete the project on time, the Centre requested an allocation of Rs68.12 billion in the Public Sector Development Programme 2023-24, against which only Rs15.5 billion has been allocated.

The caretaker CM pointed out that the latest allocation is grossly inadequate for the project. Therefore, he stressed, the project might not be completed by October 2024.

He requested Kakar to direct the relevant ministry to allocate an additional amount of at least Rs24.5 billion towards the K-IV project during the current financial year, allowing the project to be completed within the time frame. The interim PM assured his support to the project.

Malir Expressway

Baqar informed Kakar that work on the Malir Expressway is in full swing but some NOCs/permissions from the federal ministries are posing major obstacles in carrying forward the construction activities. “If these NOCs are not arranged by November 15, the lenders/banks will stop any further disbursements of loans.”

Kakar assured him that he would talk to the ministry concerned to expedite the issuance of the NOCs so that the project can get its finances at the earliest.

Cross-input tax

Baqar also discussed the cross-input tax, under which the Centre has deducted Rs31 billion from the Sindh government. He urged Kakar to direct the Federal Board of Revenue to reconcile the amount with the Sindh Revenue Board so that the deducted amount can be settled.