The Executive Committee of the National Economic Council (ECNEC) on Wednesday approved Karachi Circular Railway (KCR) project worth Rs. 201 billion.
Chaired by Federal Minister for Finance and Revenue Shaukat Tarin, the ECNEC approved five projects, including three mega ones with a cost of Rs. 270.1 billion. The megaprojects include the rural economic transformation of Rs. 30.265 billion, Greater Thal Canal Project of Rs. 38.372 billion, and Karachi Circular Railway Project of Rs. 201.57 billion. The projects also include allocations from development funds for a media campaign to create awareness about the PTI-led government’s policies and projects.
A 75 percent increase in the standardized pay packages of the staff directly recruited under the government’s development projects was also approved.
The ECNEC deliberated a summary floated by the Ministry of Planning, Development, and Special Initiatives and approved revised standardized pay packages for the staff directly recruited under development projects. The raise has been approved at a rate of 75 percent for the staff working on the Project Pay Scale (PPS).
The ECNEC approved another summary by the Ministry of Planning regarding appropriate allocation of total budget outlay in PSDP projects for running an effective media campaign to create awareness about the federal government’s policies, projects, and initiatives aimed at socio-economic development and welfare of the people.
The Ministry of Planning, Development and Special Initiatives submitted a summary on Rural Economic Transformation Project (RETP), Khyber Pakhtunkhwa. The project aims at improving the income of rural households through multi-sectoral interventions in agribusiness development and employment promotion. It will be implemented throughout the province (35 districts) to contribute to poverty reduction and food & nutrition security of rural communities.
The ECNEC approved the project at a cost of Rs. 30,265.75 million including IFAD loan of Rs. 17565.75 million, the provincial government share of Rs. 4,712 million and beneficiaries share of Rs. 7,988 million with a project gestation period of seven years ( 2022-2029).
Ministry of Planning, Development and Special Initiatives submitted a summary on recommendations after holding meetings with representatives of the Governments of Sindh and Punjab on the Greater Thal Canal Project (Phase-II). The project was approved in principle by the ECNEC on 22-12-2021 at a cost of Rs. 38372.225 million. The ECNEC after a detailed discussion approved the project on the basis of the first four recommendations.
Ministry of Planning, Development, and Special Initiatives submitted another summary on the development, operation, and maintenance of Karachi Circular Railway as a modern Urban Railway under the Public-Private Partnership model with a total cost of Rs. 201,572 million. The project envisages the construction of a 43.225 km dual-track urban mass transit system to be built in a period of 3 years.
Karachi Circular Railways Management Company (KCRMC) will be responsible to keep an oversight related to the execution, operation, and maintenance of the project.
The ECNEC approved the project after a detailed discussion and formed a committee under the chairmanship of the Finance Minister to review the transaction structure related to the federal government viability gap fund (VGF) contribution.
