Ahsan Iqbal seeks urgent action as Rs1tr throw-forward looms over power, water PSDP projects

• Planning Minister reviews key power projects including Jamshoro coal plant, Matiari–Moro–RYK transmission line
• PSDP 2025-26 allocations stand at Rs122 billion with utilization remains below 10%
• Minister directs completion of advanced projects, limits new spending on zero-progress initiatives

ISLAMABAD: Federal Minister for Planning, Development and Special Initiatives Professor Ahsan Iqbal on Monday highlighted a massive financial throw-forward exceeding Rs1 trillion in critical projects under the Power and Water Resources Divisions during a high-level review meeting of the Public Sector Development Programme (PSDP) 2025-26.

The total allocation for these sectors in the current PSDP stands at Rs122 billion, underscoring a significant gap between planned expenditure and actual financial commitments, according to a government news release.

The minister expressed serious concern over low fund utilization, which currently stands at just 10% for Power Division projects and 6% for hydel power projects under the Water Resources Division. Emphasizing that these sectors are major consumers of the development budget, Ahsan Iqbal directed officials to expedite progress on ongoing projects to prevent further delays and cost escalations.

To manage fiscal pressure effectively, the minister advised prioritizing the completion of ongoing projects that are in advanced stages rather than initiating new projects with zero progress, unless deemed critically essential. He also instructed the Power Division to identify and prioritize the most critical projects, proposing minimum required funding for the next three years, including a year-wise breakdown.

Among the key power sector projects reviewed were: the 2x660MW coal-fired power plant at Jamshoro (Rs177 billion); the Power Distribution Enhancement Investment Programme (Tranche-I) Advanced Metering Infrastructure project (Rs 16.9 billion); the Electricity Distribution Efficiency Improvement Projects in MEPCO (Rs10.2 billion) and HESCO (Rs 8.1 billion); the 500kV Matiari–Moro–Rahim Yar Khan transmission line (Rs188.5 billion); and another Electricity Distribution Efficiency Improvement project costing Rs11.7 billion.

Major hydel and transmission-related projects were also discussed, including the Dasu transmission lines, Ghazi-Barotha Hydropower Project, the upgradation and extension of NTDC’s telecommunications and SCADA system at the National Power Control Centre, and the evacuation of power from the 2,160MW Dasu Hydropower Project (Stage-I).

The meeting directed the Secretary Power Division to resolve fund utilization issues in closer coordination with the Secretaries of Finance and Planning, ensuring that public investments are converted into operational assets and energy security without further delays or additional costs.

Population growth, climate change pose major threats to food security

Separately, Federal Minister for National Food Security and Research Rana Tanveer Hussain warned that rapid population growth and climate change are emerging as the most serious challenges to Pakistan’s food security. He cautioned that failure to increase crop production could prevent the country from meeting its future food requirements.

Speaking at a meeting on the National Food Security Policy held at the Centre of Excellence in Molecular Biology (CEMB), Punjab University, the minister was joined by Chairman Pakistan Academy of Sciences Professor Dr Kausar Abdullah Malik, Director CEMB Dr Muaz ur Rehman, leading scientists, food security experts, policymakers, and researchers.

Rana Tanveer emphasized that while Pakistan possesses talent in all sectors, sustained research and innovation are essential for long-term development. He noted that although institutional research benefits are often long-term, governments are frequently discouraged from investing adequately due to the absence of immediate results.

Highlighting the link between national security and food security, the minister stressed the urgent need for extensive research in agriculture and food sectors. He warned that climate change is having severe impacts on agriculture, resulting in rising production costs, reduced yields, and growing challenges for farmers, underscoring the need for innovative solutions and strategic policy interventions.