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Govt to Shut Down 168 Incomplete Projects Worth Rs1.1 Trillion Amid IMF Pressure
On IMF's demand, govt halts 168 incomplete projects worth Rs1.1 trillion. No more federal funding—provinces to handle under 18th Amendment.
ND
by News Desk
2025-04-22
Govt to Shut Down 168 Incomplete Projects Worth Rs1.1 Trillion Amid IMF Pressure

The federal government has decided to discontinue 168 incomplete development projects, with a total estimated value of Rs1.1 trillion, following the International Monetary Fund's (IMF) demand to reduce federal spending.

According to well-placed sources, no additional funds will be released for these projects. Officials from the Ministry of Planning revealed that approximately Rs300 billion has already been spent on these schemes.

The decision comes in light of IMF’s firm stance that projects falling under provincial jurisdiction post-18th Constitutional Amendment should no longer be financed from the federal budget. The amendment, passed in 2010, devolved several subjects including health, education, and infrastructure development to the provinces.

Reasons for Project Closures:

  • Security concerns have made it impossible to continue some projects.
  • Legal cases have stalled several initiatives for years.
  • Priority will now be given to completing projects identified as essential by the respective ministries.

The Ministry of Planning is expected to issue formal notifications shortly, with the aim to refocus federal development efforts on high-impact and constitutionally aligned projects.

This move is seen as part of broader fiscal discipline measures under the ongoing IMF program aimed at stabilizing Pakistan's struggling economy and reducing the budget deficit.

While this decision may help the federal government align with IMF targets, it also raises concerns about potential setbacks in regional infrastructure and public service delivery, especially in provinces that rely heavily on federal funding for development.

 
Tagged:

IMF

PakistanEconomy

DevelopmentProjects

IMFAgreement

PublicSpending
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