ISLAMABAD: Pakistan's Special Investment Facilitation Council (SIFC) has developed an investment pipeline worth approximately $40 billion spanning industry, oil and gas, railways, roads, power, telecom, IT, pharmaceuticals, tourism and agriculture, as the government moves to revive stalled projects involving the United Arab Emirates and other Gulf Cooperation Council countries.
Jamil Qureshi, secretary of the SIFC, disclosed the figure Monday while briefing the National Assembly Standing Committee on Economic Affairs Division, which met under the acting chairmanship of Mirza Ikhtiar Baig.
The committee dismissed the government's $60 billion export target for 2030 as unrealistic, citing high input costs including gas and electricity prices, tight monetary policy and high taxation.
Qureshi told the committee that the prime minister has directed that stalled and delayed projects involving the UAE and other countries be actively pursued and brought to implementation through enhanced coordination and facilitation. He said concerted efforts are being made to develop a robust investment pipeline with a potential value of approximately $40 billion.
During the initial phase, delays in responses and coordination at both federal and provincial levels posed challenges to developing investment proposals, the committee was told. But through sustained efforts and improved institutional coordination, considerable progress has been made in building a comprehensive pipeline across key economic sectors, including industry and production, oil and gas, railways, roads and infrastructure, power, telecommunications, IT, pharmaceuticals, tourism, food security and agriculture.
The committee emphasized the importance of translating identified investment opportunities into concrete projects through timely decision-making, effective coordination among federal and provincial institutions, and resolution of regulatory, financial and administrative impediments. It stressed that greater coordination among concerned ministries, provincial governments and implementing agencies is essential to prevent strategically important projects from being delayed by procedural or institutional bottlenecks, and called for regular monitoring to ensure timely progress.
The committee recommended convening a joint consultative meeting of four to five of its members with representatives of the Ministry of Planning, Development and Special Initiatives, Ministry of Finance and Revenue, Sindh Planning and Development Board, Sindh Finance Department, WAPDA and Karachi Water and Sewerage Corporation, facilitated by the Ministry of Economic Affairs Division. The meeting should focus on major development and infrastructure projects in Karachi and Sindh, identifying outstanding issues, resolving inter-departmental and financing bottlenecks, and evolving coordinated measures to expedite implementation in the public interest, the committee said.
ML-1 Railway Project
The committee was briefed on the Main Line-1 railway project, which covers approximately 1,800 kilometers and aims to modernize and upgrade Pakistan's major railway corridor. The Asian Development Bank is being considered as lead financing institution, while the Asian Infrastructure Investment Bank and the World Bank have made co-financing commitments. The European Investment Bank, Islamic Development Bank and Japan International Cooperation Agency have also expressed interest.
The committee was told that ML-1 is not limited to rehabilitating and upgrading railway infrastructure but also incorporates institutional and operational reforms aimed at improving the efficiency, sustainability and service delivery of Pakistan Railways. The project design was re-evaluated to identify gaps and incorporate improvements, and the cumulative estimated cost has been revised to approximately $6.68 billion to $6.80 billion, down from an earlier estimate of around $9 billion.
Infrastructure under ML-1 is being designed to accommodate train speeds of up to 160 kilometers per hour, while operational speed is presently envisaged at up to 120 kilometers per hour. The committee expressed reservations about the proposed operational speed, stressing that the project should take full advantage of modern railway technologies and international standards. It said infrastructure and operational parameters should be aligned to facilitate an operational speed of 160 kilometers per hour where technically and economically feasible, rather than limiting the benefits of the upgraded infrastructure. The construction period envisaged for completion is approximately three years.
K-IV Water Supply Project
The committee expressed serious concern over the progress and completion timeline of the K-IV water supply project, underscoring its critical importance for meeting Karachi's growing water requirements. The expected completion timeline is April 2029.
The committee highlighted that Karachi currently requires more than 1,200 million gallons of water per day, with demand expected to increase substantially by 2029-30 due to population growth, urban expansion and rising domestic and commercial requirements. It also took note of a briefing on the desalination plant and was informed that the facility developed earlier had been assessed by NESPAK as not technically suitable.
The committee stressed that all technical, financial and implementation aspects of the K-IV project should be thoroughly reviewed and corrective measures taken without further delay. It recommended that the project be taken up comprehensively under the Steering Committee at the Ministry of Planning, Development and Special Initiatives, with participation of all relevant federal and provincial stakeholders. Deliberations should focus on addressing Karachi's immediate and long-term water requirements, resolving outstanding implementation issues and ensuring timely completion, the committee said. It further proposed that members of the standing committee may be invited to observe the project's progress and review measures being undertaken for timely implementation.
M-6 Motorway and Lyari Corridor
The committee was briefed on the financing and implementation structure of the M-6 Sukkur-Hyderabad Motorway project, which has been divided into five sections. Sections I and II are proposed under the public-private partnership mode, while Section III is to be financed through OPEC funding and Sections IV and V through the Islamic Development Bank. The Asian Development Bank is providing services as financial advisor for the PPP component.
The committee stressed the importance of coordinated financing arrangements, timely completion of requisite processes and effective monitoring so the project may proceed without further delays.
While discussing the Lyari Elevated Freight Corridor, the committee emphasized the need for rationalization of financing costs and said the Karachi Port Trust should play a proactive role in financing arrangements. It underscored that the financial structure should be reviewed to ensure sustainability, minimize the financial burden and secure the most appropriate and cost-effective financing for the project.
