ECNEC Approves Key Projects to Boost Pakistan's Infrastructure and Revenue Generation

Enhancing Tax to GDP Ratio:

The Executive Committee of the National Economic Council (ECNEC) recently approved the “Investment Project Financing” (IPF) component of the “Pakistan Raises Revenue Project” to enhance the country’s tax to GDP ratio. Valued at Rs. 21.518 billion, with a $80 million World Bank loan, the IPF component aims to reduce tax expenditure, broaden the tax base, and modernize the Federal Board of Revenue (FBR) with advanced ICT-based operations. The project will also establish 30 mobile facilitation centers in its first phase to provide efficient taxpayer services.

Upgrading Critical Infrastructure:

ECNEC’s meeting also focused on vital infrastructure projects. The Ministry of Communication’s revised project titled “Dualization of Rawalpindi–Kahuta Road” received approval at a cost of Rs. 23.545 billion, to be executed by the National Highway Authority (NHA). Additionally, the Ministry of Defence Production’s “Infrastructure Up-gradation of Karachi Shipyard and Engineering Works (KSEW)” project was greenlit with a revised cost of Rs. 10.689.807 billion. The project aims to enhance the repair capability of the shipyard and upgrade existing dry docks for ships and submarines.

Revamping Water Resources:

In the water resources sector, ECNEC approved the “Garuk Storage Dam, District Kharan” project in Balochistan, aimed at mitigating floods and providing water for irrigation. The project, executed by the Irrigation Department, will cost Rs. 27.753 billion. Additionally, the “Remodeling of Pat Feeder Canal System in Balochistan, District Naseerabad” project received approval at a cost of Rs. 61.793 billion, to be financed on an 80:20 cost-sharing basis between the Federal and Provincial Governments.

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Expanding Pakistan’s Energy Capacity:

ECNEC greenlit the “Chashma Nuclear Power Project Unit-5 (C-5)” of the Pakistan Atomic Energy Commission (PAEC) at a cost of Rs. 104.7 billion, with foreign exchange component (FEC) of Rs. 187.098 billion and Chinese credit of Rs. 820.742 billion. The project aims to install a 1200 MW nuclear power plant in Mianwali, further expanding Pakistan’s energy capacity.

Investing in Education:

In the education sector, ECNEC approved in principle the “Construction/Reconstruction of Existing Schools in Sindh Affected by Rain/Flood, 2022.” The project estimated at a cost of Rs. 12.3 billion will be financed on a 50:50 cost-sharing basis between the Federal and Provincial Governments, showcasing the government’s commitment to rebuilding and upgrading schools impacted by natural calamities.

Conclusion:

ECNEC’s approval of these crucial projects signifies the government’s dedication to boosting tax revenue, strengthening critical infrastructure, and expanding Pakistan’s energy capacity. The initiatives aimed at enhancing tax collection, upgrading water resources, and investing in education are expected to have a positive impact on the country’s overall economic growth and development.