The Central Development Working Party cleared five development projects on Sunday with an estimated cost of more than Rs60 billion. Planning Minister Ahsan Iqbal chaired the meeting. The projects include a major water supply scheme for Gwadar, a Karachi neighborhood improvement project, Gilgit Medical College, the National Defense University campus, and a road in Orakzai district.
Important Points
- CDWP approves five projects worth Rs60 billion in total
- 20pc cut in cost of Gwadar water project, saving Rs5.235bn
- Karachi Neighborhood Improvement Project, Rs 19.55bn sent to ECNEC
- Rs4.924bn approval for Gilgit Medical, Nursing College
- Orakzai road project stuck since 2016 finally approved
How the approval process works
The CDWP approved three projects with a total direct cost of Rs 11.7 billion. It recommended two bigger projects worth Rs48.545 billion for approval of the Executive Committee of the National Economic Council. The present financial rules specified by the National Economic Council allow the CDWP itself to approve projects costing up to Rs7.5 billion. ECNEC must approve anything beyond this limit on the CDWP’s recommendation after technical review.
The Central Development Working Party (CDWP) has cleared five development projects worth more than Rs. 60 billion. Planning Minister Ahsan Iqbal chaired the meeting. The CDWP approved three projects worth Rs11.714 billion. Meanwhile, it recommended two projects worth Rs. 48.545… pic.twitter.com/tIHG6iE6cH
— Bloom Pakistan (@bloom_pakistan) August 31, 2026
Gwadar Water Project Cost Slashed Significantly
The highlight of Sunday’s meeting was a water supply scheme to provide water from Mirani Dam to Gwadar town through a 125-kilometer pipeline under the Balochistan Socio-Economic Development Projects Phase-III. The Balochistan government had provided Rs29 billion for the project. The CDWP had recommended a cut of some 20 percent to Rs23.82 billion after a technical review of the project by the Planning Commission. The cut would save an estimated Rs5.235 billion without re-designing or curtailing the project scope.
The Planning Commission did this mainly by cutting contractor overheads through non-scheduled items, which account for about Rs23.4 billion, or 86.7 percent of the project’s base cost. The CDWP, however, linked its approval to resolving several outstanding technical questions, despite the lower cost. These include demand figures, hydrology data, confirmation of the water source, procurement strategy, land acquisition status, operation and maintenance plan (sustainable), and an implementation timeline (realistic).
Minister Ahsan Iqbal also raised another related issue during the review. He urged the Balochistan government to start a study on wastewater treatment in Gwadar, and warned that the city should not be allowed to become another Karachi, where sewage pollutes the sea. He allowed the project to move to the bidding stage to save time but explained that the contract cannot be awarded before the ECNEC’s final approval.
Karachi Project Advances With Foreign Funding
The CDWP also approved the Karachi Neighborhood Improvement Project for ECNEC approval at a revised cost of Rs19.55 billion. The project is almost finished and is partially financed by an $85 million loan from the World Bank, which is roughly Rs16.7 billion, and a Rs2.8 billion contribution from the Sindh government.
In discussing this project, the CDWP formed a committee to develop a comprehensive framework for monitoring, transparency, and accountability for foreign-funded development projects going forward. The committee comprises the Planning Commission member for Population, the Planning Commission member for Infrastructure and one representative of the Economic Affairs Division.
Three smaller projects green-lighted
CDWP directly approved three smaller projects, including Medical and Nursing College, Gilgit, at an estimated cost of Rs4.924 billion. This new facility is anticipated to enhance access to medical education in Gilgit-Baltistan, a region that has traditionally had limited local opportunities for training healthcare professionals.
The CDWP also approved the establishment of a National Defense University campus at Defense Complex Islamabad with an estimated cost of Rs2.75 billion. The committee also approved construction of a 53.4-kilometer road from Zera to Daboori in Orakzai district, at a cost of Rs4.037 billion, completing the approvals. The project has been stalled since 2016, and Minister Iqbal specifically directed that funds be released before the onset of winter so construction could move forward and finally complete this long-delayed road.
