Government Reevaluates Execution Plan for Gwadar Chamber of Commerce Building Project

The Member of Private Sector Development and Competitiveness (PSD&C) expressed concerns about the Ministry of Commerce's ability to manage infrastructure projects effectively and suggested that while the Ministry of Commerce should remain the sponsoring ministry, the Ministry of Housing & Works should be responsible for the execution. This realignment is proposed to better align roles with the rules of business and the capabilities of each ministry.

Responding to these recommendations, the Federal Minister for Planning Development and Special Initiative, Ahsan Iqbal, suggested that the Board of Investment (BoI), a suitable federal agency, prepare the PC-I (Project Concept Paper) for developing business-related federal government offices and a floor for the Chamber. He raised concerns about funding the Chamber project from the Public Sector Development Program (PSDP).

Member PSD&C countered this by emphasizing that according to the rules of business, the Ministry of Commerce should oversee chambers and associations of commerce and industry. However, since the proposed project primarily involves construction and infrastructure, it is prudent to designate the Ministry of Housing & Works as the executing agency. This recommendation is in line with the rules of business and the Ministry of Commerce's past performance in managing infrastructure projects.

The project's primary objective is to advance business interests in Gwadar and provide the government with guidance on trade, commerce, and industry matters. Funding from the PSDP will cover the construction, while the land will be provided either by the provincial government of Balochistan or the Gwadar Chamber of Commerce and Industry.

On June 4, 2022, the Central Development Working Party (CDWP) approved the Concept Paper with specific directives: submitting a PC-II for detailed design and engineering estimates and placing the project under the portfolio of the Ministry of Housing & Works, with execution entrusted to the Gwadar Development Authority (GDA).

However, a discrepancy arose when it was discovered that the project was already included in the Ministry of Housing & Works' portfolio at a total cost of Rs. 500.00 million, while the CDWP had estimated it at Rs. 70.00 million in the concept paper. Given the publication of PSDP 2022-23 and the project's inclusion in the Ministry of Housing & Works' portfolio, changing the sponsoring agency at this stage would result in further project delays.

To address this issue, both Member PSD&C and the Joint Chief Economist (Operations) decided to submit a position paper to CDWP to remove ambiguity. The paper suggests that the Ministry of Housing & Works, as the sponsoring agency, should consult with the Ministry of Commerce and GDA while preparing the PC-I for the project, ensuring alignment with their requirements.