Minister calls for groundbreaking of KIP on September 4
The revised PC1 covers development of Block A which is 550 acres long.
Furthermore, the Minister directed Industries section of Planning Ministry to evaluate the updated PC1 in the light of revised project scope and instructed stakeholders to prepare for groundbreaking ceremony scheduled for September 4.
Rizwan Bhatti, CEO PIDC briefed the Minister that the master plan features industry clustering and was administratively approved on April 21. The project is slated for completion within 15 months. The total project cost is estimated at Rs 7.404 billion, to be financed over six quarters. Dr Erfa Iqbal, Additional Secretary of the Board of Investment mentioned that the project's provisional concept paper would be approved in the next board meeting.
The Karachi Industrial Park will provide a plug and play environment to investors at minimal land costs, facilitated through a bankable lease or rental model. While discussing plot allotment, the Minister directed PIDC to establish standards for plot allocation to big and small industries, emphasizing the need for a detailed plan. The Minister stressed on the importance of the Industrial Park, calling it a one-stop facility committed to enhancing investor experience by providing utilities like water, electricity, telecommunication, as well as transportation networks and waste management systems. 'The centralized approach of Karachi Industrial Park will facilitate coordination with all relevant government agencies, reducing bureaucratic hurdles', remarked the Minister.
The Federal Minister highlighted the importance of industrial parks in developed countries, stating that these parks should offer community life and facilities, combining "life, leisure, and work." The Federal Minister also advised stakeholders to draw inspiration from Singapore and Vietnam's industrial parks, which cater to all needs. The Arabian Sea Country Club, located adjacent to the right side of the Park, will be revived by PIDC and would serve as a prime entertainment facility, offering recreational facilities.
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
2 hours ago
- Business Recorder
Govt committed to turning Pakistan into a $1trn economy by 2035: minister
ISLAMABAD: Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal said that the government is committed to achieve the goal of transforming Pakistan into a $1 trillion economy by 2035. 'Pakistan's economic indicators are once again showing signs of recovery and the government's commitment to achieving the goal of transforming Pakistan into a $1 trillion economy by 2035. The policy and planning processes must now rely heavily on disaggregated and credible data. Data is fuel for audience-based decision making to address issues such as energy, export, food security, and employment. Data is the key to identifying underserved regions and guiding youth employment and skills development initiatives. This data-centric approach is critical to achieving the ambitious goal of transforming Pakistan into a $1 trillion economy by 2035. This shift as moving towards scientific and precision planning, ensuring ultimate transparency and accountability,' the minister expressed these views during his visit to the Pakistan Bureau of Statistics (PBS)'s office on Wednesday. State of the economy A comprehensive presentation on dynamic data was given to the minister during his visit. The presentation highlighted the immense potential of this data for effective and efficient planning, implementation, and monitoring of development and economic growth interventions under the Uraan Pakistan initiative. During his visit, the minister also toured the state-of-the-art URAAN Pakistan Data Centre, which stands as a cornerstone for modern governance. Copyright Business Recorder, 2025
Business Recorder
4 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
Express Tribune
8 hours ago
- Express Tribune
Govt misses development target
Listen to article The government spent Rs905 billion on development schemes in the last fiscal year, which was lower than the allocation and may now require a downward revision in the 2.7% economic growth rate that had been worked out on the basis of Rs1.1 trillion in expenses. Of the Rs905 billion, a little over half — or Rs456 billion — was spent during the last two months (May-June), also underscoring the need to revisit the current budget strategy that artificially suppresses expenses. According to provisional figures, the federal government spent Rs905 billion under the Public Sector Development Programme (PSDP) in the fiscal year 2024-25, which ended on Monday. The Rs905 billion spending was less than the Rs1.4 trillion original budget approved by the National Assembly for the fiscal year 2024-25. However, the government subsequently cut the PSDP to Rs1.1 trillion, but still, the actual spending remained lower than the revised budget. For the last fiscal year, the government had announced a 2.7% economic growth rate, which was based on the assumption that the downward-revised Rs1.1 trillion PSDP would be fully spent. In a press briefing last month, the Chief Statistician of the Pakistan Bureau of Statistics (PBS), Dr Naeemuz Zafar, confirmed that the GDP figure assumed that the Rs1.1 trillion would be spent. An official of the PBS said on Wednesday that after the actual Rs905 billion spending, there will be some impact on economic growth calculations. He said the exact impact could not be immediately determined. Speaking to The Express Tribune, Federal Minister for Planning and Development, Ahsan Iqbal said, "We had almost touched the Rs1 trillion spending mark, but due to slow approvals by the Accountant General Pakistan Revenues (AGPR), the spending remained at Rs905 billion." Sources said the Ministry of Finance had instructed the department of the AGPR to slow down releases during the last days of June to meet International Monetary Fund (IMF)-related budget targets. According to the current budget release strategy, about 40% of the total budget was sanctioned in the last quarter, which often results in subpar expenses and may also cause leakages. A member of the Senate, who is also in the construction business, told The Express Tribune on the condition of anonymity that the AGPR did not clear contractors' cheques due to budget-related constraints. During the July-April period of the last fiscal year, the government had spent Rs449 billion. But in the past two months, another Rs456 billion was booked under development spending. In June alone, Rs308 billion in development spending was shown. However, the planning minister said that development work did not stop in the third quarter of the last fiscal year and that it was only the money that was released and booked during May-June. For the sake of the IMF programme, the finance ministry squeezed the PSDP to achieve quarterly and annual primary surplus targets. A recently released planning ministry report stated that lower-than-planned spending had impacted projects across various sectors. Despite thin fiscal space, the government was still adding either new projects or upwardly revising the cost of already approved schemes. Major spending heads According to the provisional figures, the government spent Rs60.5 billion on parliamentarians' schemes in the last fiscal year. The spending was more than the downward-revised budget. But Iqbal said that after initially deciding to revise the budget downward, the government decided to retain the original allocation for the Sustainable Development Goals (SDGs) programme. The parliamentarians' schemes are branded as SDG initiatives. Another Rs69.5 billion was spent on provincial projects, which are funded by the federal government. Financing provincial schemes is against the commitments given to the IMF and the National Fiscal Pact. About Rs64 billion was spent on schemes being executed in the erstwhile Federally Administered Tribal Areas, now merged with Khyber-Pakhtunkhwa. Against a downward allocation of Rs61 billion, spending on higher education remained at Rs58.8 billion. The Pakistan Atomic Energy Commission received its full Rs25 billion budget, but for this fiscal year, the government has drastically cut its allocation. Development spending by the Space & Upper Atmosphere Research Commission (SUPARCO) remained at Rs30.4 billion against the allocation of Rs41 billion. The government spent Rs154 billion on projects of the Ministry of Water Resources, which also include spending on two major dams. The allocation was Rs195 billion. For this fiscal year, the government has reduced the water sector allocation by 28%. Spending on motorways and highways under the National Highway Authority amounted to Rs144 billion, against the Rs161 billion allocation. Development spending on power sector projects stood at Rs88 billion, as against the Rs98 billion allocation.
