NA panel briefed on delays in foreign-funded projects

ISLAMABAD: Pakistan is currently receiving multibillion-dollar loans for around 50 foreign-funded projects from different multilateral and bilateral creditors but the execution of projects is facing unwarranted delays owing to different reasons.

The National Assembly’s Standing Committee on Economic Affairs Division (EAD) held its meeting on Wednesday at the Parliament House under Muhammad Atif MNA to get an in-depth briefing on multilateral projects and analysis of local currency components related to foreign currency transactions.

However, the issue of commitment charges owing to delays in executing the foreign-funded projects could not be fully highlighted. The EAD is overseeing and dealing with 18 multilateral projects with the Asian Development Bank (ADB), 21 with World Bank (WB), 3 with Islamic Development Bank (IsDB), 1 with OPEC Fund, 2 with Asian Infrastructure Investment Bank (AIIB), and 1 with International Fund for Agricultural Development (IFAD).

The span of projects covered various sectors, including energy, transport, agriculture, public sector management, finance and health.

During the session, the EAD outlined several factors contributing to project execution delays. Key procedural challenges were identified, including the lengthy processes involved in preparing and approving Project Concept-1 (PC-I) documents, necessary revisions leading to time and cost overruns, delays in establishing designated project accounts and a general lack of understanding regarding the requirements of development partners.

The timely establishment of Project Management Units (PMUs) and appointment of dedicated project directors could effectively mitigate human resource-related delays.

The NA panel members stressed the importance of incorporating land acquisition, local concerns, and security issues into the project policy frameworks at both provincial and federal levels. The chairman committee highlighted the necessity of devising a strategic approach for foreign-funded projects to streamline execution and address the underlying factors causing delays.

The NA panel decided to summon the secretary of planning in the upcoming meeting to get their point of view and find a solution for effective utilization of foreign-funded projects.

The committee reached a consensus to seek a detailed briefing from the secretary planning on project policies, aiming to formulate recommendations that address the challenges associated with project execution delays. It was emphasized that projects of national significance should not be hindered by routine procedural issues and that reforms are needed to facilitate their timely progress for best interest of the nation.

The EAD reaffirmed its commitment to enhance coordination with both provincial and federal governments, which is crucial for expediting the execution of multilateral and other projects. The committee proposed conducting separate briefings for each multilateral project by inviting the respective executing agencies to discuss project status, existing issues and make recommendations for accelerating implementation.