Government Approves Rs37 Billion for 31 CPEC Development Projects in FY2019-20 through PSDP Funding

Boosting Economic Growth and Infrastructure Development in Pakistan

P.c. The Nation

Government Funding Breakdown: CPEC and National Development Projects in FY2019-20


The government has disbursed approximately Rs 37 billion (38.5 percent) for China-Pakistan Economic Corridor (CPEC) initiatives in the 2019-20 Public Sector Development Program (PSDP), a fraction of the total earmarked Rs 95.73 billion.

A total of 31 CPEC projects, with a cumulative cost of Rs 1.62 trillion, received an allocation of Rs 95.73 billion in the current fiscal year, courtesy of the Pakistan Tehreek-e-Insaf (PTI) administration.

Within the 2019-20 PSDP, Rs 360 million was directed towards the initial design and drawing work for the upgradation and rehabilitation of the pivotal ML-I railway project. This project also encompassed the establishment of a dry port near Havelian as part of the CPEC venture, along with the hiring of design and drawing vetting consultants. The ML-1 Railway Project, a strategic component of CPEC, was allocated Rs 1.8 billion for preliminary design in 2019-20.

Out of the overall allocation of Rs 16 billion in the 2019-20 PSDP, the Railway Division has thus far received Rs 5.4 billion for a variety of development projects.

Additionally, Rs 114 million was allocated for the overhaul of terminal facilities and dry ports, while Rs 100 million was earmarked for the enhancement and refurbishment of various railway stations.

To support the rehabilitation and procurement of 300 remanufactured traction motors, Rs 80 million was released from the total allocation of Rs 400 million. Furthermore, Rs 160 million was provided for land acquisition for the railway corridor in Gwadar, out of a total allocation of Rs 800 million. Records indicate that the government allocated Rs 4.5 billion for the upgrade of Pakistan Railway's existing Main Line-1 (ML-I) and the establishment of a dry port near Havelian (2018-22) Phase-1 as part of CPEC, with the project's total cost amounting to Rs 324.66 billion.

In the current fiscal year, the government allocated Rs 555 million for the New Gwadar International Airport project, while the project's total cost reached Rs 22.25 billion.

Meanwhile, the federal government disbursed Rs 257.17 billion (36.7 percent), including Rs 53.62 billion in foreign aid (41.8 percent), for numerous ongoing and new development projects under the 2019-20 PSDP, a fraction of the total allocated budget of Rs 701 billion.

According to the latest data from the Ministry of Planning, Development, and Reform, the government allocated Rs 113.95 billion (37.5 percent), including Rs 7.88 billion in foreign aid, for development projects across various ministries, divisions, and related departments out of a budgeted allocation of Rs 303.66 billion.

For the development projects of the National Highway Authority (NHA), Rs 80.029 billion was released out of a total budgeted allocation of Rs 154.966 billion, while Rs 26.78 billion was disbursed for Security Enhancement, compared to a budgeted allocation of Rs 32.5 billion.

The Water Resources Division received a total of Rs 30 billion, including Rs 3 billion in foreign aid, out of a budgeted allocation of Rs 85.73 billion. In contrast, Rs 4 billion was allocated for the Interior Division, which was below the budgeted allocation of Rs 9.85 billion for the current financial year. The Ministry also provided Rs 16 billion for development projects under the Cabinet Division.

Additionally, the Ministry of Planning, Development, and Reform allocated Rs 10.64 billion for development projects in Azad Jammu and Kashmir (AJK), compared to a total budgeted allocation of Rs 27.264 billion, and Rs 6.57 billion for development projects in Gilgit-Baltistan, out of a budgeted allocation of Rs 17.585 billion.