Pakistani minister says 43% of foreign-funded projects in the country are “problematic”

ISLAMABAD: PakistanRussia’s economy ministry said on Thursday that 43 per cent of foreign-funded projects were problematic.
The ministry said 43% of these projects, worth about $ 35 billion, were problematic – either not progressing well or failing to achieve the desired results. Dawn reports a newspaper.
Referring to the meeting of the National Coordinating Committee for the Review of Foreign-Funded Projects, the ministry mentioned that it manages a current portfolio of $ 34.8 billion such projects in various economic sectors, of which projects worth more than $ 15 billion (43 percent) are considered problematic.
An official statement issued by the ministry said the share of federal energy projects was about $ 3.3 billion, with $ 2.3 billion (or nearly 70 percent) estimated to be problematic.
No wonder then that the energy sector is emerging as a challenge to the country’s stability, an official said, citing more than 17% losses and a 10% short recovery in the energy sector and 10-17% systemic losses in the gas sector, local media reported.
Minister of Economic Affairs Sardar Ayaz Sadik chaired the review meeting, which was attended by heads of executive agencies, relevant ministers and representatives of provincial governments.
Sadiq emphasized the impact of energy sector projects on the economy as a whole and society as a whole, while hating the prevailing situation.
Energy is perhaps one of the most important resources for economic growth to sustain industrial and commercial activities, he said, adding that it is emerging as a challenge.
The Minister insisted on the need to solve problematic projects related to chronic project delays. Sadik, along with other Pakistani officials, is also setting targets with schedules for better monitoring and prevention of time and greater efficiency.
Regular follow-up monthly meetings were proposed by the Secretary of Economic Affairs Mian Asad Hayaudin for monitoring and quick problem solving.
The review meeting comes amid the economic crisis in Pakistan, for which the country is seeking help from the International Monetary Fund (MFIs).
Earlier, talks took place between the Pakistani government and the IMF in Doha, where the organization wanted Pakistan to take steps to revive a stalled $ 6 billion program to control its fiscal deficit.
On this background, Shehbaz Sharif increased fuel prices for the third time in recent weeks and cut fuel subsidies to reduce the fiscal deficit and provide critical support from the IMF.

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