Economic corridor is all on PM’s mind

[Edevelop]

ISLAMABAD -

Prime Minister Nawaz Sharif has expressed his “utter disappointment" over sheer "incompetence and lack of commitment" of the top babus of the ministry of communications for giving him a “poor presentation” about uplift and future plans to expand motorways and highways, Pakistan Today has learnt.

A well-placed source which attended a briefing conducted for the prime minister at the ministry the other day said the PM, who is obsessed with the promise by the Chinese prime minister for the Pakistan-China economic corridor, gave the communications secretary seven days to prepare for a follow-up briefing over the projects and future planning for installing the Pakistan-China Economic Corridor.

“During the briefing, the communications secretary informed the PM about gross irregularities committed by the PPP regime, adding that the ministry could not undertake major construction work in communications sector as funds earmarked for development and uplift of motorways and roads in the country were diverted by former prime ministers for mega projects in Multan, Larkana and Gujjar Khan.”

The source said the prime minister was informed that former prime minister Yousaf Raza Gilani diverted ministry’s funds towards Multan and Larkana for mega projects, including a web of bridges in Multan and roads network to the lands of President Asif Zardari and his relatives.

He said similar was the case with prime minister Pervez Ashraf, who diverted funds of the ministry towards Gujjar Khan’s development and due to the same reasons, the ministry could not undertake its basic patch-work, let alone undertaking new projects.

“However, the prime minister turned a blind eye and ignored the matter, leaving an impression that the government was not serious in probing gross irregularities committed by the PPP regime,” the source added.

The source said the secretary pointed out fifteen anomalies of serious nature in the audit of Motorways Police during the tenure of Zafar Abbas Lak. However, the PM ordered that those be shared with his office but did not make any specific order.

Minister for Finance Muhammad Ishaq Dar, Minister for Information Pervez Rashid, Minister for Planning and Development Ahsan Iqbal, Minister for Railways Khawaja Saad Rafiq, Special Assistant to the PM Tareq Fatemi and senior officials of the ministries of planning, railways and communications attended the briefing.

The matter also surfaced later during the proceedings of the sub-committee of the Senate Standing Committee on Communication when ANP leader Senator Zahid Khan accused former PM Gilani of diverting funds from the ongoing National Highway Authority (NHA) projects in Khyber Pakhtunkhwa towards Multan.

The senator also raised concern that during the past few months, Rs 3.7 billion had been allocated for Multan package.

It was also said that only small amounts were released for Lowari Tunnel, Peshawar Northern By-Pass and Hassanabdal-Mansehra Highway projects.

The source said the previous government of the PPP diverted funds of the Communications Ministry, neglecting the undertaking of various significant development projects, including projects in Balochistan and Khyber Pakhtunkhwa.

The incomplete projects included AttabadLake at Karakoram Highway (KKH), Hassanabdal-Mansehra Road, Lowari Tunnel, Faisalabad-Multan Motorway, M-8 and other vital projects, which still remain stuck due to shortage of funds.

Economic corridor is all on PM

 

[Argus Panoptes]

ISLAMABAD -

Prime Minister Nawaz Sharif has expressed his “utter disappointment" over sheer "incompetence and lack of commitment" of the top babus of the ministry of communications for giving him a “poor presentation” about uplift and future plans to expand motorways and highways, Pakistan Today has learnt.

..............
Economic corridor is all on PM

NS should realize that the lack of progress with the grandiose projects he has "on his mind" has less to do with "incompetence and lack of commitment" and more to do with "WE HAVE NO MONEY!". If he wants progress, he should arrange for proper financing of the projects he wishes to see completed during his tenure.

 

[darkinsky]

the priority should be the security, till this issue is not solved no investment can come to pakistan

all misplaced priorities

 

[Edevelop]

NS should realize that the lack of progress with the grandiose projects he has "on his mind" has less to do with "incompetence and lack of commitment" and more to do with "WE HAVE NO MONEY!". If he wants progress, he should arrange for proper financing of the projects he wishes to see completed during his tenure.

I personally think lack of commitment is part of the issue. As you delay projects, the costs automatically increase. Labor costs and Flow of Investments don't always stay same.

In 2007 FDI was 20% but by the end of PPP tenure it was down to 13%. So there is incompetence

Just take the Neelum-Jehlum Dam, Kalabagh Dam, Basha Dam, M-8, Lowari Tunnel etc. These projects are actually more than 15 years old.

 

[Rahil khan]

the priority should be the security, till this issue is not solved no investment can come to pakistan

all misplaced priorities

They are working on the security policy. One can guess that easily because of the meeting between the PM and our spy chief held recently in his own headquarters. PM has assured that the new policy will be made with the consent of our security institutions. We have to wait till couple of weeks. But sir, whether you accept it or not, i can smell the positive changes in upcoming future.

 

[darkinsky]

They are working on the security policy. One can guess that easily because of the meeting between the PM and our spy chief held recently in his own headquarters. PM has assured that the new policy will be made with the consent of our security institutions. We have to wait till couple of weeks. But sir, whether you accept it or not, i can smell the positive changes in upcoming future.

fool me once shame on you fool me twice shame on me

 

[Argus Panoptes]

I personally think lack of commitment is part of the issue. As you delay projects, the costs automatically increase. Labor costs and Flow of Investments don't always stay same.

In 2007 FDI was 20% but by the end of PPP tenure it was down to 13%. So there is incompetence

Just take the Neelum-Jehlum Dam, Kalabagh Dam, Basha Dam, M-8, Lowari Tunnel etc. These projects are actually more than 15 years old.

Sir, the main cause for delays of all these projects is the same - MONEY, or actually the lack of it. We have no money.

 

[Menace2Society]

Sir, the main cause for delays of all these projects is the same - MONEY, or actually the lack of it. We have no money.

Oh stop your whining will you.

Stop always trying to play devils advocate and be positive for a change.

 

[SBD-3]

the priority should be the security, till this issue is not solved no investment can come to pakistan

all misplaced priorities

Nothing can satisfy you my friends. Those who couldn't help themselves, need not to be considered. Federal Government should do development for Karachi. If it doesn't please you, doesn't matter.

Sir, the main cause for delays of all these projects is the same - MONEY, or actually the lack of it. We have no money.

You can always find money for a useful project. The issue hasn't been funds access but rather proper utilization. Even the corruption ravaged regime like PPP was able to acquire loads of debt. Somebody is always willing to lend you, if you have a plan and have sincerity of execution.

 

[Argus Panoptes]

............
You can always find money for a useful project. The issue hasn't been funds access but rather proper utilization. Even the corruption ravaged regime like PPP was able to acquire loads of debt. Somebody is always willing to lend you, if you have a plan and have sincerity of execution.

Sir, loans are other people's money. What I said is that WE have no money. We are in debt and have nothing to show for it.

 

[SBD-3]

Sir, loans are other people's money. What I said is that WE have no money. We are in debt and have nothing to show for it.

Agreed, but no mega project in developing countries like Pakistan can be solely built with the internal funding. Even in US, the states and the federal government raise such money through infrastructure bonds.

 

[Argus Panoptes]

Agreed, but no mega project in developing countries like Pakistan can be solely built with the internal funding. Even in US, the states and the federal government raise such money through infrastructure bonds.

Of course, but please note that that money is provided for by resources internal to the country and its banking system, not from abroad. Big difference. We don't have money. They do. Therefore, we cannot complete our projects and they can.

 

[SBD-3]

Of course, but please note that that money is provided for by resources internal to the country and its banking system, not from abroad. Big difference. We don't have money. They do. Therefore, we cannot complete our projects and they can.

Our banking system is already loaded with government debt, where do you think the doubling domestic debt amount go? Just look at the treasury holdings of commercial banks and you'll notice that they have been growing vigorously over the past five years or so. Pakistan's savings market is bank-driven and the retail market for bonds is virtually non-existent. Thus raising marginal debt from banking sector makes crowding out severe whereas the private and retail investors are non-participative.

 

[Argus Panoptes]

Our banking system is already loaded with government debt, where do you think the doubling domestic debt amount go? Just look at the treasury holdings of commercial banks and you'll notice that they have been growing vigorously over the past five years or so. Pakistan's savings market is bank-driven and the retail market for bonds is virtually non-existent. Thus raising marginal debt from banking sector makes crowding out severe whereas the private and retail investors are non-participative.

Which is why we have no money for our projects.

That is what NS should be concentrating on: how to generate the resources needed to complete these projects.

 

[SBD-3]

Which is why we have no money for our projects.

That is what NS should be concentrating on: how to generate the resources needed to complete these projects.

But how can we do so when our real economy is on virtual stand still? Tax revenues can't be judiciously enhanced unless real economy doesn't grow. That's why I always say, we need to kick start our economy by hook or by crook first.