By our correspondent
ISLAMABAD: Federal Planning Minister Ahsan Iqbal has announced the cancellation of 118 development projects worth around Rs1 trillion, in a bid to save Rs100 billion immediately. Speaking to reporters in Islamabad, he said the government would now prioritise the completion of key infrastructure initiatives, including the Hyderabad-Sukkur Motorway, within the next three years.
Iqbal confirmed that Rs1 trillion has been earmarked for development in the upcoming fiscal year, with Rs250 billion allocated specifically for Balochistan. However, the overall development budget is Rs10 billion less than last year’s figure, reflecting the country’s ongoing financial constraints. Among the strategic projects that remain on track are the Diamer-Bhasha Dam, the Hyderabad-Sukkur Motorway, Chaman Road, and the second phase of the Karakoram Highway.
Iqbal acknowledged the country’s constrained fiscal space, noting that the finance ministry had estimated Rs1 trillion for development spending, of which Rs120 billion would go to the National Highway Authority. “After provincial transfers and debt repayments, there is very little left for new development,” he said, adding that Prime Minister Shehbaz Sharif has formed a committee to oversee development spending.
The social sector has been allocated Rs15 billion, with Rs7 billion reserved for merged districts. Despite budget cuts, Iqbal said the government is committed to safeguarding projects of national significance. He credited ongoing reforms in project management with saving billions over the past year. Of the Rs1.1 trillion development budget, Rs664 billion has been allocated for infrastructure, energy, water, transport and physical planning. Last year’s development allocation stood at Rs1.4 trillion.
