ISLAMABAD: The federal government on Monday cleared three major infrastructure projects worth Rs100 billion in Khyber Pakhtunkhwa, recommending them to the Executive Committee of the National Economic Council (Ecnec) for formal approval.

The decision was taken at a meeting of the Central Development Working Party (CDWP) presided over by Minister for Planning, Development and Special Initiatives Ahsan Iqbal.

“Federal government reaffirms commitment to KP’s development,” said Iqbal, referring to CDWP’s recommendation for a Rs69.89bn irrigation project to boost agriculture and rural livelihoods in the province.

Since the imposition of emergency and governor’s rule in KP, the Centre has pledged to work on the province’s development and progress, besides its top priority of combatting terrorism.

The CDWP meeting also cleared another 11 projects throughout the country with an estimated investment of nearly Rs126.50bn, including a mega project worth Rs85.34bn in Punjab.

This brought the total number of projects cleared by CDWP to 14, with an estimated cost of Rs226.48bn.

Of them, Rs40.9bn worth of 10 smaller projects were approved by the CDWP, while four other larger projects were recommended to Ecnec for formal approval.

Under financial rules, CDWP can itself approve projects costing up to Rs7.5bn, while it technically clears larger projects for approval by Ecnec.

The projects, including two mega water and agriculture sector projects worth around $550 million in KP and Punjab, would also unlock around $460m in foreign loans from the Asian Development Bank (ADB).

In the water resources sector, two mega climate-resilient infrastructure projects were recommended to Ecnec for approval.

These included the Khyber Pakhtunkhwa Resilient Irrigated Agriculture Livelihoods Development Project valued at Rs69.89bn. It would be co-financed by the ADB, which would contribute Rs56.133bn ($200m), while the KP government would provide Rs11.69bn with land acquisition.

The project aims to rehabilitate the Pehur Main Canal, construct the Mulkhow Irrigation Distribution System, and extend the Pehur High Level Canal.

The second mega project recommended to Ecnec was the Integrated Hill Torrent Management (Chachar-Mithawan) project in Dera Ghazi Khan and Rajanpur districts, worth Rs85.34bn.

Manila-based ADB would also be co-financing this project with a Rs73.06bn ($260m) share, while the Punjab government will be contributing Rs12.28bn.

The initiative seeks to implement modern spate irrigation, flood protection channels, telemetry systems, and centralised Supervisory Control and Data Acquisition (Scada) monitoring to strengthen regional water security.

The meeting also cleared Rs13.32bn Prime Minister’s Solar Scheme for Newly Merged Districts (NMDs) and referred it to Ecnec to provide off-grid solar energy solutions to households in merged districts.

After the imposition of emergency in KP, the merged districts are among 12 districts run by the newly formed Area Representative and Development Council.

In the transport and communications sector, the CDWP recommended a project for the improvement and widening of the 39-kilometre Chakdara-Timergara section of N-45, costing Rs17.01bn to Ecnec.

To be financed through foreign funding via Exim Bank, the project will upgrade a vital transport corridor linking Chakdara, Timergara, Dir, and Chitral, significantly boosting trade, road safety, and tourism across the Kalash, Shandur, and Kumrat valleys.

Approved projects

The CDWP itself approved a total of 10 projects.

The first one, pertaining to the construction of an eight-lane overhead bridge at Imamia Colony Railway Crossing, Shahdara (N-5)-Lahore, was approved at an estimated cost of Rs7.49bn.

This includes construction and rehabilitation of connecting link roads to alleviate urban congestion in Lahore’s Shahdara Town.

In the education and training sector, the CDWP approved in principle three initiatives to expand quality educational access.

It approved in principle the establishment of Daanish Schools across Azad Jammu and Kashmir, Gilgit-Baltistan, Balochistan, KP, and Sindh, with the preparation estimated at Rs122.4m.

Similarly, the establishment of a Daanish School in Islamabad’s Kuri, costing Rs7.36bn was approved in principle to expand educational infrastructure in the federal capital.

Additionally, the establishment of a Daanish School in Kan Mehterzai of Balochistan’s Qila Saifullah district, valued at Rs4.53bn was approved in principle, subject to a technical review by a committee led by the member for infrastructure.

In the higher education sector, four key youth development initiatives were processed.

The PM’s Youth Development Centres project, valued at Rs4.15bn was approved in principle, incorporating third-party validation and structured monitoring frameworks to ensure effective resource utilisation.

The forum also approved the PM’s Talent Hunt Youth Sports League (Phase-I), worth Rs3.99bn, where a steering committee under the Pakistan Sports Board will coordinate efforts across all provinces and regions.

The CDWP also approved Rs1.97bn worth of PM’s National Innovation Award and the establishment of PM’s Youth Programme Sports Academies (High Performance and Resource Centre) and Youth Olympics, worth Rs2.956bn, to foster talent and modern sports infrastructure.

Furthermore, the meeting approved in principle the revamping of Pakistan Television Corporation at an estimated cost of Rs3.96bn.

The project seeks to modernise public broadcasting through digital transformation, international asset commercialisation, and long-term financial sustainability.

The CDWP also evaluated two energy initiatives in the power sector. It approved in principle the installation of a pilot Battery Energy Storage System at the 220 kV Jhimpir-I Grid Station at an estimated cost of Rs4.40bn, to support grid stabilisation and renewable integration.

ISLAMABAD: Pakistan on Monday sought investment from US financial institutions in its oil refinery upgradation projects as the two countries discussed increasing cooperation in the energy sector.

The development came during a meeting between Petroleum Minister Ali Pervaiz Malik and US Chargé d’Affaires Natalie Baker.

During the meeting, Malik briefed the US envoy on measures Pakistan was taking to ensure energy security amid the evolving geopolitical situation, an official statement said.

Malik highlighted that the ongoing conflict in the Middle East had created challenges for fuel availability, requiring proactive measures to maintain uninterrupted supplies, it said.

The minister underscored Pakistan’s commitment to securing its energy needs and highlighted the ongoing engagement between the teams of both countries to explore opportunities for cooperation.

“He noted that Pakistan’s refinery upgradation programme could offer investment opportunities for US financial institutions,” the statement said.

Baker, for her part, congratulated Pakistan on efficiently managing the fuel supply situation, noting that the country had not experienced a fuel shortage despite the challenging regional circumstances, it added.

The US envoy expressed her country’s desire to work closely with Pakistan to address its energy needs. She emphasised the importance of creating opportunities for US companies in Pakistan and expressed optimism about establishing long-term energy supply contracts, noting that such arrangements would be mutually beneficial and create opportunities for American businesses, it said.

During the meeting, the managing directors of Pakistan State Oil and Pakistan LNG Limited briefed the participants on the interest shown by US companies in LNG supply to Pakistan.

Malik also invited US companies to participate in the upcoming Pakistan Minerals Investment Forum, highlighting the investment opportunities available in Pakistan, the handout said.

He expressed deep appreciation for US support and emphasised that enhanced bilateral engagement would help strengthen energy cooperation and contribute to Pakistan’s long-term energy security, the statement concluded.

The development comes after four of five local refineries finally entered into formal agreements with the government last month to upgrade their refining technologies for cleaner product quality and increased production, with an estimated investment of about $5 billion in five years.

ISLAMABAD: Energas, a consortium of the Lucky Group and Qatar Energy, has given up a multi-million-dollar plan to establish a liquefied natural gas (LNG) terminal at Port Qasim, citing fundamental changes to Pakistan’s energy policy, requirements and longstanding unresolved policy and fiscal matters, it emerged on Monday.

On the other hand, the Port Qasim Authority (PQA) has warned Energas of terminating its final letter of intent (LOI) unless an “unconditional acceptance” is received on or before Nov 30, 2026, along with an updated status of the project.

This would also result in forfeiture of the $2 million initial concession fee, PQA said.

Subsequently, Energas has approached the prime minister for the refund of $2m, absolving it of any contractual lapse and instead blaming the government and factors beyond its control for not moving ahead.

Informed sources told Dawn that Qatar Energy had booked an LNG terminal and committed to supply additional LNG quantities at around 10.2pc of Brent — almost the same rate it contracted to Pakistan State Oil under a second-term contract — to ensure full utilisation of terminal capacity on its own.

Qatar has been seeking pipeline capacity allocation for LNG transportation through the terminal it planned with local partners near Karachi, a level playing field for LNG marketing and a terminal, and exemption from third-party access (TPA) that requires certain terminal capacity for use by government entities.

Ahead of Prime Minister Shehbaz Sharif’s August 2022 visit to Qatar, Pakistan approved changes to the LNG policy to remove restrictions on upcoming private sector LNG terminals to provide their part capacity to the government.

These were officially conveyed to the Qatari counterpart by then-petroleum minister Musadik Malik for re-engaging on LNG sector cooperation, including speedy completion of the LNG terminal and another long-term contract for more gas supplies on top of two existing long-term contracts, in addition to LPG supplies.

While the energy situation kept changing, the project could not move forward over the subsequent three years as Pakistan sought diversion of its existing contracted LNG cargoes even before this year’s closure of the Strait of Hormuz following the Feb 28 US-Israel attacks on Iran and suspension of Qatar’s LNG production.

Quoting past correspondence, Energas’ chairman Muhammad Ali Tabba complained to PM Shehbaz that PQA was “demanding” Energas’s unconditional acceptance of the final LOI by Nov 30, 2026, failing which PQA will cancel the final LOI and forfeit the $2m initial concession fee paid by Energas.

He said the Lucky Group Consortium had taken up a self-funded project in good faith and in response to Pakistan’s energy requirements prevailing at the relevant time, which had since materially changed.

“Energas’s inability to proceed with the project is attributable to two critical factors: firstly, a fundamental change in national energy policy and requirements, resulting in a clear frustration of purpose; and secondly, the persistent and longstanding unresolved policy and fiscal matters with the government, PQA and other government bodies/authorities, which have continuously impeded the viability,” he noted.

The Energas chairman contended that those issues remain unresolved to date, which could have led to a final investment decision (FID) by Qatar Energy and Pakistani partners.

“The government had committed to resolving these matters following discussions with the State of Qatar. However, despite the passage of time, the aforesaid matters remain unresolved, thereby adversely affecting investor interest,” Tabba said.

He added that the national energy requirements and the policy environment had materially evolved since the project was originally conceived and Energas had already approached PQA for the return/refund of the partial concession fee.

Energas said Pakistan’s official Integrated Energy Study (IES) — Final Report of March 28, 2025 confirmed that no new LNG terminals were required over the next five years.

According to Energas, this “unequivocal admission” on the part of the government materially alters the circumstances and context in which the Energas project was conceived and directly affects the necessity and economic rationale for the project, resulting in a clear frustration of purpose from an investor’s perspective.

It recalled that at the time of issuance of the provisional LOI in May 2020, the LNG Policy 2011 provided LNG terminal operators with a five-year tax holiday commencing from the Commercial Operations Date, but the exemption was withdrawn in June 2021 for new terminals while existing terminal beneficiaries continued to avail the exemption.

This was attributed to conditions imposed by the International Monetary Fund (IMF); thus, the proposed LNG terminal became “redundant and infructuous”, Energas said.

In its letter to Energas, PQA said the $2m deposited by Energas was not an ordinary refundable advance but an initial/partial concession fee under Clause 2.6(i) of the Project Guidelines 2019 that provides that this amount may be forfeited if the developer fails to fulfil the required conditions within the prescribed time, unless the parties agree otherwise. Furthermore, paragraph 27 of the final LOI required LOI termination and forfeiture of $2m in the absence of unconditional acceptance within the deadline.

Highlighting Energas’s reasons regarding pipeline capacity allocation, execution of Gas Transportation Agreements (GTAs) with gas companies, allocation of tie-in area, exemption under TPA Rules and the income-tax exemption issue, PQA asserted that Energas was responsible for these developers’ obligations.

“Project Guidelines require the developer to undertake the necessary surveys, investigations, environmental studies, hydraulic studies, detailed design and other project-related studies, and to obtain the requisite governmental and regulatory approvals,” PQA pointed out.

It added that it was also the developers’ responsibility to have financing, design, construction, relevant access, regulatory compliance and other project requirements.

• Proposed legislation aims to merge Public-Private Partnership Authority and Privatisation Commission
• Seeks to provide immunity to incumbent, former chairmen, secretaries and other officials

ISLAMABAD: The government has introduced a bill in the National Assembly, for the establishment of a Privatisation and Public-Private Part­nership Commission (PPPPC), by merging the existing Public-Private Partnership Authority (P3A) and Privatisation Commission, to prevent duplication of institutional functions and processes.

The proposed law that seeks amendments to both legal instruments — the Privatisation Commission Ordinance 2000 and Public Private Partnership Authority Act 2017 — also provides legal and investigation immunity to the current and all former chairmen, secretaries, board members, officials and consultants from any act of omission or commission in good faith and in personal capacity and commits public funds to contest any such cases.

The all-powerful commission will be led by the incumbent chairman Muhammad Ali and will comprise a majority of members from the private sector, including two women directors. It will collectively administer four public funds — privatisation fund, public contributory fund, viability gap fund and PPP project development funds — created through allocation in the federal budget, receipts from international lenders, income from investments or any other source.

The government claims that the PC Ordinance dealt with privatisation of SOEs under the government policy while P3A Act governed a separate body. Both frameworks were concerned with mobilising private sector capital and expertise in relation to public assets, infrastructure and services and their administration through two separate institutions entailed duplication of institutional functions and processes.

Therefore, the government’s pol­icy decision was needed for establishing a single institutional framework and mechanism for carrying out privatisation and public private partnership transactions in an efficient manner. For this, it seeks to reconstitute the Privatisation Commission as the Privatisation and Public-Private Partnership Commission, to repeal the Public Private Partnership Authority Act 2017 and dissolve the P3A.

The bill provides for the reconstitution of the board with a majority of independent members, including members with public private partnership experience and at least two women, fixed terms of office and clear grounds for disqualification and removal. The bill also empowers the proposed reconstituted commission to conduct functions of advising on, appraising, structuring, facilitating and monitoring public private partnership projects and the establishment of the viability gap fund, the PPP project development facility, and the public contribution fund.

The draft claims that it provides a comprehensive legal framework for public private partnerships, including the contractual framework for PPP agreements, a federal PPP pipeline, the approval process, the risk management unit and PPP transaction execution committees. It also empowers the commission to set up PPP nodes within government agencies, settlement of disputes and an alternative process for below-threshold projects.

The proposed law enables the commission to utilise public contribution fund to meet any government obligations with respect to PPP projects, including land acquisition, site handover, right of way and any such other enabling actions as may be required in connection with the project. All these funds would be non-lapsable.

The PPP agreement between the public and private parties shall be a public document and any interested person shall be entitled to obtain its copy subject to applicable laws, and the government or the commission or the government agency shall not be held liable for any claim of the private party for a risk which is not specified in the PPP agreement. All existing contracts signed by P3A would stand transferred to the new commission without any disadvantage to the private parties.

The proposed law empowers the commission to require in writing from any government agency to submit a complete list of its existing, proposed and planned projects, including projects under consideration or development, whether or not identified as PPP projects within fifteen days. The agencies shall be obligated to comply with such a requirement with full accuracy and completeness. Where a government agency fails to comply with any such requirement, the PC chairman may refer the matter to the ministry or division concerned for compliance.

There will be a committee to review potential PPP projects proposed for inclusion in the federal PPP pipeline and shall provide its recommendations, which shall be placed before the board for consideration and decision.

All officers, consultants, advisers, auditors, employees and other staff of the P3A shall upon the dissolution of the P3A be retained by the commission for a period of six months or until the expiration of their respective contracts, whichever is earlier, on terms and conditions not less favourable than those applicable to them immediately before the dissolution.

Published in Dawn, October 26th, 2026