logo
Chairman Railways tells Senate body: 38 projects worth Rs260.085bn underway in 2024–25

Chairman Railways tells Senate body: 38 projects worth Rs260.085bn underway in 2024–25

ISLAMABAD: Chairman of Railways Tuesday informed Senate Standing Committee on Railways that a total of 38 projects were underway, with a total cost of Rs 260.085 billion during 2024–25.
The meeting of the Senate Standing Committee on Railways, chaired by Senator Jam Saifullah Khan, was convened Tuesday.
The Ministry of Railways briefed the Senate Committee on upcoming, ongoing, and pending projects and informed the committee members about the hurdles currently being faced by the ministry.
The meeting was attended by senators, Nasir Mehmood, Dost Ali Jeesar, Asad Qasim, Saifullah Sarwar Khan Nyazee, Kamil Ali Agha, Dost Muhammad Khan, the mover Senator Shahadat Awan, and the Minister for Railways.
The chairman of Railways told the Senate Standing Committee on Railways that during the year 2024–25, a total of 38 projects were underway, with a total cost of Rs260.085 billion.
Out of the 38 projects, the ministry successfully completed six, and the remaining 32 have been carried forward to 2025–26.
The chairman, while briefing on the Main Line (ML-1) project (Karachi to Rohri),described it as the lifeline of the Reko Diq and Thar Coal projects, which are expected to start this year, depending on the provision of funds. He added that the total estimated cost of ML-1 isRs2,298.18 billion, and the ministry has submitted a proposal for an allocation of Rs75 billion for the financial year 2025–26 to initiate the project.
It was also revealed to the committee that total 12 projects of expansion, track safety, rehabilitation, replacement of tracks, feasibility studies and upgraded security system required proposed allocation Rs11,076 million during the financial year of 2025-26.
The committee demanded the details of delayed projects in the upcoming meeting of the Standing Committee.
The committee members commended the newly adopted strategy of the ministry to complete the projects partially in different phases. The chairman of the committee emphasised the need to complete projects on time to avoid extended costs and directed the ministry to deliver high-end railway services to the general public.
The Minister for Railways said that, as the country is passing through a financial crisis, the provinces may contribute to the new or ongoing railway projects in their respective areas. He stated that the ministry is planning to upgrade railway schools and hospitals across Pakistan.
In response to a query regarding railway land, the minister informed the committee that an anti-encroachment campaign has recently been initiated nationwide against land grabbers.
It was also briefed to the committee that Pakistan has developed locomotives and coaches capable of running at speeds over 160 km/h, but unfortunately, the country lacks the required tracks to operate such trains. The chairman of the committee directed the ministry to conduct a feasibility study on upgrading of track system to support high-speed trains in Pakistan.
Copyright Business Recorder, 2025
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Crypto mining, other sectors: IMF rejects Pakistan's subsidised power tariffs proposal
Crypto mining, other sectors: IMF rejects Pakistan's subsidised power tariffs proposal

Business Recorder

time7 hours ago

  • Business Recorder

Crypto mining, other sectors: IMF rejects Pakistan's subsidised power tariffs proposal

ISLAMABAD: The International Monetary Fund (IMF) has rejected Pakistan's proposal to offer subsidised electricity tariffs to crypto mining and certain industrial sectors, warning that such moves would create new complications in the already strained power sector. Testifying before the Senate Standing Committee on Power, chaired by Senator Mohsin Aziz, Secretary Power Dr Fakhray Alam Irfan stated that all major power sector initiatives must be cleared by the IMF. He noted that although Pakistan has surplus electricity, particularly in winter months, the IMF is cautious about any pricing mechanisms that could distort the market. In September 2024, the Power Division proposed a six-month incremental consumption package (October–March) at marginal cost (Rs 23/kWh), based on last year's usage. However, after two months of discussion, the IMF only approved a three-month version, citing potential market distortions. The curious case of Bitcoin mining in Pakistan In a subsequent plan shared in November 2024, the Power Division suggested a targeted marginal cost-based package (Rs 22–23/kWh) for energy-intensive industries such as copper and aluminium melting, data centers, and crypto mining, arguing it would boost consumption of surplus electricity and reduce capacity charges. Still, the IMF rejected the proposal, stating it resembled sector-specific tax holidays that have historically created imbalances. 'As of now, the IMF has not agreed,' Dr Irfan confirmed, adding that the plan is also under review by the World Bank and other development partners. He emphasised that the government has not withdrawn the proposal and remains engaged with international institutions to refine it. During the session, a heated debate also emerged on the government's recent agreement with scheduled banks to reduce the circular debt stock of Rs 1.275 trillion. Senator Shibli Faraz criticised the deal, stating that banks were 'forced at gunpoint' to offer the loans. 'If I were a banker, I would have refused,' he said, warning that the burden would fall on consumers through future levies. Secretary Power rebutted this claim, clarifying that no new levies have been imposed. He stated that the existing Debt Servicing Surcharge (DSS) of Rs 3.23/kWh will continue for the next five to six years to recover the amount. He also highlighted that circular debt inflows have been reduced through timely subsidy injections. On consumer facilitation, Dr Irfan reported that over 500,000 people have downloaded the 'Apna Meter Apni Reading' app, allowing users to upload photos of their meter readings to potentially reduce inflated billing. He said the app will soon be extended to K-Electric (KE) users. The committee also expressed displeasure over the absence of the Federal Minister for Power, who was expected to answer questions on Independent Power Producers (IPPs) and sectoral inefficiencies. Senator Mohsin Aziz said the establishment of certain IPPs was an injustice and questioned why excess profits have not been recovered. Senator Shibli Faraz alleged that inflated project costs were used to justify higher returns, adding that no real steps have been taken to curb the circular debt crisis. 'The public is bearing the burden of government inefficiencies,' he said. Senators raised concerns about forced load shedding, especially in areas like Tharparkar, Matiari, and Umerkot, where daily outages last up to 14 hours, despite consumers paying their bills. Senator Poojo Bheel accused local officials of corruption, claiming they take bribes for illegal connections and restore disconnected supplies for a 'fee'. He emphasised that even paying customers are facing denial of their rights due to systemic failure. In response, Dr Irfan explained that revenue-based load shedding occurs in areas with losses exceeding 20%, citing a tragic case where a SEPCO employee was fatally stabbed during a disconnection drive. KE's Chief Distribution Officer Sadia Dada said that out of 2,100 feeders, about 30% face load shedding due to high electricity theft, often through Kundas (illegal hooks) in informal settlements. She said consumer bills are now offered in instalments to ease payment difficulties. Dr Irfan stated that 58% of consumers fall under the 'protected' category, paying Rs 10 per unit. With the approval of international partners, the government will allocate Rs 250 billion in subsidies, while also rolling out more tech-based solutions for theft control. So far, 500,000 people have downloaded the meter reading app, with 250,000 registered users. Senator Haji Hidayatullah raised an over-billing case involving a Rs 2.3 million charge on a property in Peshawar that had already been cleared by PESCO. He claimed PESCO officials offered to settle the bill for Rs 300,000, calling it blatant corruption. The Secretary Power assured that the matter will be investigated. The CEO of HAZECO also briefed the committee on issues in Sub-Division Lora Chowk, including estimated billing, feeder faults, and pending ELR work under release numbers 46241, 51911, and 51910. Following extensive deliberations, the committee expressed displeasure at the Power Division's repeated deflection of questions and directed the department to submit comprehensive answers at the next meeting. Copyright Business Recorder, 2025

PM lauds KSA's role in truce with India
PM lauds KSA's role in truce with India

Express Tribune

time11 hours ago

  • Express Tribune

PM lauds KSA's role in truce with India

Prime Minister Shehbaz Sharif on Wednesday appreciated the efforts by Saudi Arabia for peace in the Middle East as well as its significant role in the ceasefire understanding between Pakistan and India. The prime minister said this in a meeting with Ambassador of Saudi Arabia in Islamabad Nawaf bin Saeed Al Malkiy, while fondly recalling his warm and cordial telephone conversation with the Saudi Crown Prince on June 24 to discuss the regional situation. He conveyed his respectful regards to the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud and Saudi Crown Prince and Prime Minister Prince Mohamed bin Salman bin Abdulaziz Al Saud. The prime minister told the ambassador that as Pakistan had assumed the rotating Presidency of the UN Security Council for the month of July, it would count on Saudi Arabia's support to ensure that its tenure was conducted smoothly and successfully. The Saudi ambassador thanked the prime minister for Pakistan's role in peace and stability in the region. FBR Prime Minister Shehbaz Sharif on Wednesday applauded the Ministry of Finance and the Federal Board of Revenue (FBR) for achieving a historic 42% increase in federal tax revenues during the fiscal year 2024-25 - the highest surge in the past decade. The prime minister chaired a high-level weekly review meeting on the digitization and reform agenda of the FBR, whereas during the briefing, it was revealed that reforms and enforcement of new tax laws enabled the government to collect an additional Rs 865 billion in revenues compared to the previous year, an eightfold increase.

Remittances: govt set to withdraw some incentives
Remittances: govt set to withdraw some incentives

Business Recorder

time13 hours ago

  • Business Recorder

Remittances: govt set to withdraw some incentives

ISLAMABAD: The federal government is all set to do away with some incentives extended to overseas Pakistanis to remit money through legal channels, sources told Business Recorder. On June 27, 2205, Finance Division briefed the ECC that the government of Pakistan has five Remittance Incentive Initiatives being executed by the State Bank of Pakistan (SBP) and Pakistan Remittance Initiative (PRI). The TT Charges Scheme is the flagship remittance incentive initiative of the government that provides zero cost/ free send model for sender and receiver on eligible remittance transactions. The current incentive model of the scheme approved by the ECC in August 2024 offers reimbursement/ incentive of Saudi Riyal (SAR) 20 for every transaction of $100 and above; an additional, per transaction incentive of SAR 8 for up to 10 percent or $100 million growth over the previous year (whichever is lower); and further per transaction additional incentive of SAR 7 for growth exceeding 10 percent or $100 million over the previous year. Exchange cos welcome their inclusion in PRI SBP apprised that the volume of home remittances received during CFY (July- May) has touched the level of USD 34.9 billion, exhibiting an increase of 28.8% or around $ 7.8 billion compared to the same period of FY 24. With this momentum SBP expects home remittances to touch an unprecedented level of $38 billion by end June 2025. However, with this increased inflow, the corresponding cost/ budgetary requirement also increased exponentially. In FY 2025, the total cost of remittance incentive initiatives, exceeded Rs.200 billion, incurring a cost of approximately PKR 50 billion to the GoP/ quarter. Out of this, around 85% of the expense; i.e., PKR 170 billion (Rs.42.5 billion per quarter) was incurred under the IT Charges scheme. To rationalise the cost, SBP has proposed changes in contours of TT Charges Scheme which includes revising the minimum eligible transaction threshold from the existing $ 100 to USD 200 and the corresponding rebate from the existing variable rates to a flat rate of SAR 20 per eligible transactions. In addition, SBP has proposed that the Exchange Companies (ECs) Incentive Scheme may be merged with the TT Charges Scheme whereas the Marketing Incentive Scheme (MIS) may be discontinued from FY 2026. The SBP, while highlighting risk of some deceleration in remittances, is of the view that their proposal is likely to result in a significant cost cut down to Rs 88 billion in FY 26 as compared to Rs 206 billion in FY 25. Further, it is imperative that to ensure the cost cut, the revisions become effective from July 1, 2025; otherwise, the market may assume continuation of existing rates and features of the Schemes. Foregoing in view, approval of the ECC was solicited for the following proposals by the SBP: (i) The minimum size of eligible transaction under the TT Charges Scheme may be revised from the existing $100 to $200 from July J01,2025 and the corresponding rebate may be revised from the existing variable rates to a flat rate of SAR 20 pet eligible transactions; (ii) Exchange Companies Incentive Scheme (ECIS) may be merged in IT Charges Incentive Scheme and the existing ECIS may be discontinued from July 1, 2025; (iii) Marketing Incentive Scheme may be discontinued from July 1, 2025; (iv) to meet the expenditure of such payments to Banks/ aggregators/ Exchange Companies, Finance Division may chalk out a mechanism in consultation with SBP; and (ii) a mechanism for gradual phasing out of Remittance Incentive Schemes may be chalked out. SBP is tasked to propose and present an evidence-based plan factoring in cost- benefit analysis of the existing schemes- Raast integration with Buna and SAMA gateways and strengthening of controls vis-à-vis transfer of remittances through formal channels. During the ensuing discussion, it was pointed out that there is a need to rationalise the incentives being given on remittances as these could create distortion. It was also observed that the proper analysis of discontinuation of the incentives schemes needs to be made before any final decision can be made to discontinue such schemes. ECC was of the consensus view that proper transition plan needs to be made in case it is decided that such incentive schemes for remittances are to be gradually phased out since there is a behavioural change involved in it. After detailed discussed, the ECC approved the proposal with the direction that Finance Division and State Bank of Pakistan will conduct a thorough impact and sensitivity analysis regarding the proposed scheme and to present to the ECC a comprehensive transition plan for the gradual phasing out of such incentive schemes. Copyright Business Recorder, 2025

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store