The Ministry of Housing and Works (MoHW) has admitted that the Federal Government Employees Housing Authority (FGEHA) has halted the work on ongoing projects due to an unprecedented rise in construction material prices.
This was revealed during a meeting of the Senate Standing Committee on Housing and Works held on Monday at the Parliament Lodges.
It was revealed that the price adjustment included in the contract in line with Pakistan Engineering Council’s (PEC) standard price adjustment guidelines did not cover the current increase in prices of construction materials.
The committee was informed that the ministry was doing all in its power to come to an amicable resolution and has forwarded a summary of the issues to the Economic Coordination Committee (ECC) for the approval of recommendations.
The committee was informed that another hurdle that has played an important role in stalling projects pertains to land acquisition issues.
Members took strong notice of slow progress and stressed the need for rate analysis. The committee emphasized that stopping work was illegal, and the ministry must deal with this issue accordingly and a sub-committee was formed to review the matter in greater detail.
Discussing details of Pakistan Public Works Department (PWD) funds utilized for Malakand Division in the past 15 years, the committee showed concern regarding documentation and directed the ministry to provide details related to the whole province in the next meeting.
Discussing details of projects of the MoHW in Sindh, the committee recommended that allocated funds for the province must be reviewed.
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