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ISLAMABAD: Pakistan on Friday greenlit another $200 million (Rs57bn) loan from the Asian Development Bank (ADB) for digitalisation, despite serious questions raised by the Planning Commission. The project was one of seven projects worth Rs116bn cleared by the Central Development Working Party (CDWP) at a meeting presided over by Planning Minister Ahsan Iqbal. He conditionally cleared the Rs57bn Transforming and Digitalising Revenue Administration (TADRA) project, which aims to increase the tax-to-GDP ratio to 13.5pc by 2029 from 11.1pc at present. The approval comes as the country has already utilised more than $4.7bn in foreign loans aimed at improving revenue collection, while the tax-to-GDP ratio continues to hover around 11pc. The planning minister “recommended the project to the Executive Committee of the National Economic Council (Ecnec), with the condition that the Pakistan Institute of Development Economics (PIDE), a state-owned think tank, thoroughly review its business model”, an official statement said. It was placed on record that PIDE had already conducted a study on loans taken by the government to reform the energy sector and tax administration, “which indicates that approximately $4.7bn has been obtained from development partners to reform Pakistan’s tax system. “Therefore, the Revenue Division should conduct an impact assessment of previous reform interventions undertaken under the Tax Administration Reforms Programme (TARP), Pakistan Single Window (PSW), Integrated Transit Trade Management System (ITTMS) and Pakistan Raises Revenue Project (PRRP) — the four major loan programmes for the Federal Board of Revenue — to determine the impact of the reforms and value for money.” The project’s clearance was necessary to secure a $200m loan that the ADB’s management had already committed and which required formal approval by its board. The loan is part of the ADB’s Investment Project Financing (IPF) under its Ordinary Capital Resources (OCR) concessional window, or Asian Development Fund, and carries a standard concessional term of 25 years, including a five-year grace period, at an annual interest rate of 1.5pc to 2pc. Based on objections raised by various analytical wings of the Planning Commission and views expressed by PIDE, Iqbal “stressed the need for clearly defined and measurable outcomes, particularly in terms of revenue generation, improvement in the tax-to-GDP ratio and expansion of the taxpayer base”, an official statement said. It added that the FBR had assured that the loan would contribute to increasing the tax-to-GDP ratio to 13.5pc by 2029 and bringing more taxpayers into the tax net. The Planning Commission demanded that, before approving the project and the loan, the FBR should first seek concept clearance on whether the project was synchronised with the FBR’s overall Rs350bn Transformation Plan approved by the federal cabinet. It also sought a matrix of policy actions proposed under the transformation plan, along with the implementation status of each policy action or initiative under previous, ongoing and proposed programmes. The FBR reported that the project was part of its 2024-28 Transformation Plan for accelerating the digitalisation of the revenue administration ecosystem, enhancing operational efficiency, improving taxpayer compliance, ensuring transparent customs clearance and elevating Pakistan’s global competitiveness. The Planning Commission had reservations that the project should not proceed without an impact analysis of already executed projects aimed at reforming and strengthening the FBR’s capacity, a gap analysis of existing facilities, a needs assessment and a feasibility study to determine the requirements of the proposed intervention. It also called for quantifiable results-based measurement indicators (RBMIs) and a plan to ensure the sustainability of the project’s activities after its completion. External experts from the National University of Computer and Emerging Sciences and the National University of Sciences and Technology also highlighted the lack of a gap analysis, a comprehensive data security framework, clarity on the basis of the AI model proposed for system design, and an analysis of the existing system and details of the AI model proposed to be deployed in the new systems. Among other things, the project also seeks to upgrade hardware and software, including existing 850TB servers, to 3PB as data storage requirements are expected to increase following the implementation of video-camera storage and processing systems on production lines in five major sectors, including sugar, cement, tobacco and textiles. The CDWP also recommended the “PakSat-2 Satellite System”, costing Rs37.2bn, to the ECNEC for approval. In June, the CDWP had supported the project in principle to deploy a sovereign, secure and ‘below-internet’ mobile communication network for at least 10,000 government users to address gaps that were causing critical information leakages, but had raised technical questions. The PakSat-2 project is aimed at replacing PakSat-IR, which is set to complete its 15-year operational life later this year. The Planning Commission had advised improving the technical capabilities of the Rs709 million ‘PAKAWAZ Secure Mobile Communication Ecosystem’, which aims to establish a secure mobile communication application capable of supporting video and audio calls, voice and video messages, file and photo sharing, centrally managed contact lists, and text and group messaging, besides application servers, mobile handsets, kill-switch controls and so on. The sources said the National Telecommunication Company (NTC), which had proposed the project, had improved the specifications for an unbreakable security system with maximum integrity to ensure confidentiality, integrity, availability and national data sovereignty. The project is designed to conform to national security requirements by providing an isolated “private 4G LTE Core Network” that is physically or logically air-gapped from the public internet, addressing shortcomings identified after the recent war with India and lessons learnt from other events across the Middle East. Besides referring these two mega projects, worth Rs94.3bn, to Ecnec, the CDWP itself approved five projects with a combined cost of Rs21.59bn. These included the Rs5.015bn “Promotion of Olive Cultivation on Commercial Scale in Pakistan Phase-II”. Phase I was implemented in Kallar Kahar, Islamabad and the wider Potohar belt and is now being expanded to Balochistan and the New Merged Districts. The meeting also approved Rs6bn for a revised project to establish the Dr Ashfaq Ahmad Khan Centre in Basic Sciences across eight national centres, seven of which — covering Artificial Intelligence, Cyber Security, Big Data and Cloud Computing, GIS and Satellite Technology, Automation and Robotics, Applied Mathematics, and Livestock and Genomics — had been completed. The meeting also approved Rs3.623bn for the “Development of Geospatial Complex (Geo-AI Development & Innovation Hub)” for the development of a space programme. Another Rs5.758bn was approved for “Revamping and Refurbishment of Different Facilities at Pakistan Sports Complex (PSC), Islamabad”. A water-sector project titled “Improvement of High Frequency (HF) Radios Network of Water Resources Management Directorate (WRMD), WAPDA”, worth Rs338.179 million, was also approved.

Pakistan's Central Development Working Party (CDWP) approved three development projects worth PKR 11.714 billion and referred two larger schemes valued at PKR 48.545 billion to the Executive Committee of the National Economic Council for final approval. The Ministry of Planning, Development and Special Initiatives announced the decisions on Sunday. #### What did the CDWP approve at its latest meeting? The CDWP is a government body that reviews and approves public sector development projects before larger schemes move to ECNEC for final sign-off. At this meeting, chaired by Planning Minister Ahsan Iqbal, it cleared projects worth a combined PKR 60.259 billion spanning health, education, transport and water infrastructure. The approved projects included a revised PKR 4.924 billion plan to establish a medical and nursing college in Gilgit. Iqbal said expanding medical education in remote areas was important for building a skilled local health workforce, and called for the project's early completion after delays caused by funding constraints since it began in 2017. #### Which education and transport projects were cleared? The CDWP approved a PKR 2.753 billion project to establish a National Defense University Faculty of Contemporary Studies campus at the Defense Complex Islamabad. Iqbal directed the university to align its research with national development goals, including Pakistan's target of becoming a USD 1 trillion economy and reaching USD 100 billion in exports by 2035. In the transport sector, the CDWP approved a PKR 4.037 billion project to build a 53.4 kilometer road from Zera to Daboori in Orakzai district. Iqbal directed authorities to release remaining funds before winter to complete the federally funded project, which has been under development since 2016 and is expected to improve connectivity in the newly merged districts. #### Which projects were referred to ECNEC? The CDWP referred the PKR 19.545 billion Karachi Neighborhood Improvement Project to ECNEC for further consideration. The project will be financed through foreign funding, with its local component covered by the Sindh government's Annual Development Program. Iqbal directed the formation of a committee, including Planning Commission members and a representative from the Economic Affairs Division, to develop a framework for monitoring foreign-funded projects. He said such projects must provide value for money and called for stronger mechanisms to ensure transparency and accountability. The CDWP also referred a PKR 29 billion project to supply Gwadar with water from Mirani Dam to ECNEC for approval. The scheme forms part of Balochistan's socioeconomic development program and aims to build sustainable water infrastructure for the port city. Iqbal directed the Balochistan government to study wastewater treatment options in Gwadar, warning against allowing untreated sewage to pollute the sea. He permitted authorities to proceed to the bidding stage to save time, but said no contract could be awarded until ECNEC grants approval. The meeting was attended by senior officials from the Planning Commission, federal ministries, provincial planning departments and other government institutions.

• Plans include Gwadar water scheme, Karachi neighbourhood project, Gilgit medical college, NDU campus and Orakzai road • Study on wastewater treatment in Gwadar ordered to prevent sewage from polluting sea ISLAMABAD: The Central Development Working Party (CDWP) has cleared five development projects involving an estimated cost of over Rs60 billion, including a multi-billion-rupee water supply project to provide water from Mirani Dam to Gwadar through a 125-kilometre pipeline. The CDWP meeting, presided over by Planning Minister Ahsan Iqbal, approved three development projects with a combined estimated cost of Rs11.7bn. It recommended two other projects worth Rs48.545bn for approval by the Executive Com­mittee of the National Economic Council (Ecnec), including the procedural clearance of the Rs19.55bn Karachi Neighbourhood Impro­vement Project (KNIP), which is already nearing completion with a World Bank loan. Under the current financial rules approved by the National Economic Council (NEC), the CDWP is empowered to approve projects costing up to Rs7.5bn, while projects with higher estimated costs are approved by Ecnec on the recommendations of the CDWP after technical clearance. Based on a technical evaluation by the Planning Commission, the CDWP recommended reducing the estimated cost of the “Construction of Water Supply Scheme to Gwadar Town from Mirani Dam under Balochistan Socio-Economic Deve­lopment Projects Phase-III” by around 20 per cent to Rs23.82bn, against the Rs29bn proposed by the Balochistan government. The reduction would result in an estimated saving of Rs5.235bn without any change in the design or scope of the project. The Planning Commission rationalised the project cost by 20 per cent, exclusively under non-scheduled items, which account for approximately Rs23.4bn, or 86.7pc, of the base cost, by curtailing contractor overheads. It has, however, asked Ecnec to approve the project subject to satisfactory resolution of outstanding technical observations, particularly regarding demand figures, hydrology, confirmation of the water source, procurement strategy, land acquisition status, a self-sustainable operation and maintenance (O&M) strategy, and a realistic implementation plan. While reviewing the project, Minister Ahsan Iqbal directed the provincial government to initiate a study on wastewater treatment in Gwadar, observing that the city should not be allowed to become another Karachi, with sewage polluting the sea. He also allowed the project to proceed to the bidding stage to save time, but directed that the contract should not be awarded until the project receives approval from Ecnec. The CDWP also cleared the “Karachi Neighbourhood Impro­vement Project”, with a revised cost of Rs19.55bn, for approval by Ecnec. The project is proposed to be financed through foreign funding, including an $85 million (Rs16.7bn) World Bank loan and Rs2.8bn contributions from the Sindh government. While discussing the Karachi project, the CDWP constituted a committee comprising the Planning Commission’s member (Population), member (Infrastructure) and a representative of the Economic Affairs Division (EAD) to develop a comprehensive framework for effective monitoring, transparency and accountability of foreign-funded development projects. Of the three smaller projects, with a combined estimated cost of Rs11.714bn, the CDWP approved the establishment of a Medical and Nursing College at Gilgit at an estimated cost of Rs4.924bn. The CDWP also approved the establishment of a National Defence University (NDU) FCS Campus at Defence Complex Islamabad (DCI) at an estimated cost of Rs2.75bn. It also approved the “Construction of Road from Zera to Daboori, District Orakzai (53.4 km)” at a cost of Rs4.037bn. The minister directed that funds be released before the winter season to facilitate completion of the project, which has been lingering since 2016. _Published in Dawn, August 31st, 2026_

ISLAMABAD – The Central Development Working Party (CDWP) has approved a project of Physical Planning & Housing sector presented namely “Construction of New Balochistan Assembly at Quetta” worth Rs9519 million in-principal and recommended to ECNEC for further considerations. CDWP in a meeting chaired by the Federal Minister for Planning, Development & Special Initiatives and Deputy […] The post CDWP approves Rs9,519 million for construction of new Balochistan Assembly appeared first on Daily Pakistan English News.

The Central Development Working Party (CDWP) approved 11 development projects worth over Rs101 billion, with the majority focused in Punjab. These projects span sectors such as higher education, IT, housing, transport, and tourism, showing a strong push for regional infrastructure and services. Four projects worth Rs91 billion were sent to the Executive Committee of the […]

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