Thursday, October 6, 2022

Govt proposed Rs55b for CPEC in the next budget

The government proposed Rs 55 billion for the China-Pakistan Economic Corridor (CPEC) projects in the next budget, which does not correspond to the financing needs of a Rs 1.6 trillion portfolio.

The total cost of CPEC projects has increased to Rs 1.6 trillion, of which Rs 305 billion has already been spent on these schemes. The remaining funding for these projects is estimated at Rs 1.3 trillion, according to officials at the Ministry of Planning.

Pakistan Railways Mainline-I project was again maintained in the Public Sector Development Program (PSDP), although no progress has been made during the past two years, despite making it part of the national development plan.

The total cost of this scheme is estimated at Rs 1.12 trillion, but the government has allocated onlyRs 10.6 billion in the next budget, starting in July. Efforts would be made to launch the Railways Mainline-I project in FY2021-22, according to the working document of the Annual Plan Coordination Committee meeting.

The Mainline-I scheme would obtain Rs 500 million in the next fiscal year against the remaining need for Rs 1.3 billion.

About 25 CPEC-related schemes were included in the Public Sector Development Program (PSDP) 2021-22, according to officials from the Ministry of Planning and Development. The story is based on schemes that have been mentioned as CPEC projects in official documents or are already known CPEC schemes.

The government has included three schemes for the supply of gas facilities to CPEC Special Economic Zones in Rashakai, Faisalabad, and Bostan. It has allocated about INR 1.8 billion to cover the total cost of these schemes.

The government has paid some parts of the money for ongoing CPEC projects and the remaining parts of the money will be allocated to the next budget.

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