ISLAMABAD: The federal government has rejected a proposal by the Ministry of Water Resources to conduct third-party validation of the Neelum-Jhelum Hydropower Project (NJHPP), citing the existence of an already constituted inquiry commission to probe the project’s massive cost overruns and poor performance.
The decision was taken during a meeting of the Central Development Working Party (CDWP) held on Friday under the chairmanship of Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal. The forum argued that an additional validation exercise was unnecessary as an inquiry commission was already examining the multi-billion-rupee project, which has failed to deliver the desired outcomes.
The NJHPP has become a textbook case of cost and time overruns, with its estimated cost escalating from Rs34 billion to over Rs550 billion. Despite the project’s failure, concerns were raised during the meeting over the lack of accountability for those responsible.
During the CDWP session, eight key development projects were taken up for consideration. Four projects worth Rs10.551 billion were approved, while four major projects amounting to Rs256 billion were recommended to the Executive Committee of the National Economic Council (ECNEC) for further approval.
In the education and training sector, two revised projects were reviewed. The CDWP recommended the revised “Prime Minister’s Pakistan Fund for Education,” valued at Rs14 billion, to ECNEC. Ahsan Iqbal stressed that the project should return to its original objective of providing scholarships and Qarz-e-Hasna to talented and deserving students pursuing higher education in critical fields such as IT, artificial intelligence, science, development economics, water resources and mining. He said the prime minister’s education initiatives aim to expand opportunities for underprivileged segments of society. The Ministry of Education was directed to submit a modified PC-I in line with DCPC instructions before forwarding it to ECNEC.
The forum also approved the revised “Construction of Graduate Block in National College of Arts (NCA), Lahore,” costing Rs1.607 billion, to facilitate the expansion of academic programmes at the country’s premier art institution. The planning minister noted that the development of creative industries is a key component of the Uraan Pakistan vision to boost exports.
Two health sector projects were discussed. The “Expansion of Armed Forces Institute of Cardiology and National Institute of Heart Diseases (AFIC-NIHD), Rawalpindi,” worth Rs12.948 billion, was recommended to ECNEC, with directions to explore alternative financing options due to fiscal constraints under the Public Sector Development Programme (PSDP). The revised “Punjab Family Planning Programme,” valued at Rs4.282 billion, was approved, with the minister urging provinces to fully exercise their devolved responsibilities and ensure social sector programmes are results-driven. He expressed concern over Pakistan’s weak social indicators, including its status as one of the few countries still affected by polio and a high population growth rate of 2.55 percent.
In the transport and communications sector, the revised “Karachi Urban Mobility Project (Yellow BRT Corridor),” costing Rs178.593 billion, was recommended to ECNEC. The project is to be financed through a World Bank loan, government of Sindh contributions and private sector participation. The minister expressed concern over slow progress over the past six years and directed that the project’s cost-sharing ratio be reviewed before ECNEC consideration.
In the water resources sector, the CDWP approved the “Project Readiness Financing for Punjab Water Resources Management,” worth Rs1.673 billion, to strengthen water governance in Punjab, jointly financed by the Asian Development Bank and the provincial government.
The forum also approved the “Hosting Community Support Programme,” valued at Rs2.988 billion, which will focus on solarising schools and healthcare facilities and improving education infrastructure in hosting communities. Additionally, a revised project of the Power Division—“Upgradation and Extension of NTDC’s Telecommunications and SCADA System,” costing Rs50.374 billion—was recommended to ECNEC, to be financed through the Asian Development Bank and NTDC’s own resources.
Summing up the meeting, Deputy Chairman Planning Commission Ahsan Iqbal emphasized that public funds are derived from taxpayers and stressed the responsibility of government institutions to ensure transparent and efficient use of every rupee for national development.
