Islamabad Capital Territory

Islamabad | ReNews Pakistan
Construction of the long delayed Sukkur Hyderabad M 6 Motorway is set to formally begin in November, with the project’s groundbreaking ceremony expected to be attended by top national political leadership.

Federal Minister for Communications Abdul Aleem Khan said President Asif Ali Zardari, Prime Minister Shehbaz Sharif and Pakistan Peoples Party Chairman Bilawal Bhutto Zardari would be invited to the groundbreaking ceremony.

Responding to a statement by Bilawal Bhutto Zardari, the communications minister said in a post on X that preliminary work for the M 6 Motorway was progressing rapidly and the project would be formally launched with the laying of its foundation stone in November.

Abdul Aleem Khan said construction of the motorway, which had remained pending for nearly three decades, was finally moving towards implementation.

He said it was an important opportunity to turn the M 6 Motorway into a practical reality after years of delay.

The minister said the motorway would provide a major boost to commercial activity not only in Sindh but across Pakistan by improving the movement of people and goods.

He added that the M 6 project would also play an important role in supporting economic growth and strengthening regional connectivity.

The Sukkur Hyderabad section is considered a crucial missing link in Pakistan’s north south motorway network and its completion is expected to improve connectivity between Sindh and the rest of the country.

Islamabad | ReNews Pakistan
Pakistan expects to receive around $530 million from the International Monetary Fund in climate related financing during the current fiscal year 2026,27, according to sources in the Ministry of Finance.

The Finance Ministry has included the anticipated climate financing inflows in the government’s annual borrowing plan for the current fiscal year.

According to the sources, the projected $530 million in climate financing will be separate from the funds Pakistan is receiving under the IMF’s $7 billion loan programme.

The expected inflows have been incorporated into the annual financing framework as part of the government’s external borrowing projections for FY2026,27.

Sources said the inclusion of climate financing in the annual borrowing plan reflects the government’s expectation that additional IMF linked funds will become available during the fiscal year for climate related financing requirements.

The climate financing component is expected to supplement Pakistan’s broader external financing needs while remaining separate from disbursements under the main IMF programme.

Islamabad | ReNews Pakistan
The federal government has devised a mechanism to recover more than Rs 110 billion in outstanding electricity dues from the provinces by deducting the amounts from their shares under the National Finance Commission award, as financial pressures in the power sector continue to mount.

According to sources, the Power Division and Finance Division have reached an understanding on the mechanism for making deductions against provincial electricity arrears, with around Rs 50 billion planned to be recovered in the initial phase.

The government has also informed the International Monetary Fund about the proposed arrangement.

Sources said the IMF, however, raised concerns over the possible fiscal impact of deducting electricity dues directly from provincial NFC shares, noting that provincial revenues were already under pressure and further deductions could aggravate their financial difficulties.

The total verified electricity arrears owed by the provinces have crossed Rs 110 billion, according to sources, while the government is seeking to recover around Rs50 billion at an early stage.

Separately, fiscal targets involving a cash surplus of Rs 1.7 trillion from the provinces and Rs 1.036 trillion in cash grants are also under consideration as part of the broader fiscal framework.

The issue comes as circular debt in the power sector has also increased. According to a briefing given by the Power Division to the IMF, electricity sector circular debt rose by Rs 61 billion during the previous financial year, taking the total stock to around Rs 1.675 trillion.

Sources attributed the increase partly to subsidy related adjustments and payment disputes involving electricity distribution companies.

The IMF has also raised concerns over what it considers insufficient use of available savings to reduce the circular debt burden.

Meanwhile, the Power Division is proceeding with the installation of smart meters to address recurring billing disputes between provincial governments and electricity distribution companies.

The initiative is intended to provide a more permanent mechanism for resolving disagreements over provincial electricity consumption and billing.

The issue of a uniform electricity tariff after the privatisation of distribution companies also came under discussion during talks with the IMF.

Sources said the Fund sought clarity on whether the existing uniform tariff policy would continue after privatisation of the distribution companies or be discontinued, but no definitive position was communicated by the government.

At present, consumers served by both relatively efficient and inefficient distribution companies are covered under the uniform tariff policy.

The timeline for privatisation of power distribution companies and the policy framework to be followed after their privatisation were also discussed.

Sources said an attempt had earlier been made to deduct more than Rs 6 billion a month from Khyber Pakhtunkhwa’s share, but the amount could not be debited through the central bank because the provincial government did not provide the required debit authority.

The IMF has continued to stress the need for a sustainable solution to power sector circular debt, improvements in electricity distribution and stronger fiscal discipline.