Islamabad: Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal Chaudhry chaired the second meeting of the Prime Minister's Committee constituted to review the development concerns of Gilgit-Baltistan (GB) and formulate actionable recommendations for accelerating the region's development.
Chief Minister Gilgit-Baltistan Amjad Hussain Azaar, Leader of the Opposition in the Gilgit-Baltistan Assembly Hafiz Hafeezur Rehman, Federal Minister for Power Sardar Awais Ahmad Khan Leghari, who participated virtually, and senior officials of the federal and Gilgit-Baltistan governments attended the meeting.
The meeting reviewed progress on the committees constituted to examine key development issues confronting Gilgit-Baltistan, with particular focus on energy, financing and revenue, tourism, regulatory frameworks, institutional capacity and development projects.
Reviewing the energy situation in Gilgit-Baltistan, the meeting was informed that the Rs10.6 billion Naltar Power Project was nearing completion, while the Rs12.9 billion Hanzel Power Project was also at an advanced stage of completion.
The meeting also reviewed progress on the Rs24.9 billion PSDP project titled '100 MW Distributed Solar Photovoltaic (DPV) Plants at Various Sites in Gilgit-Baltistan.' The Planning Minister termed the project a high-priority initiative for addressing the acute electricity shortage in the region and directed that its implementation be expedited.
The meeting was briefed that the project comprises rooftop and utility-scale solar installations, along with associated transmission lines and access roads. The transmission infrastructure and access roads falling within the scope of the Gilgit-Baltistan government would be executed by the provincial authorities.
Prof. Ahsan Iqbal directed that the federal and Gilgit-Baltistan components of the project be executed simultaneously rather than sequentially to ensure its timely completion. He directed the GB government to immediately initiate work on the access roads and transmission infrastructure falling within its share.
The Planning Minister further directed that third-party validation of the project should proceed concurrently with implementation, ensuring independent verification of quality and compliance without bringing ongoing work to a halt.
Emphasising the urgency of the matter, Ahsan Iqbal observed that 'energy is the number one crisis in Gilgit-Baltistan' and stressed that the region could not afford even a single day's delay in addressing its electricity shortage, particularly given the hardships being faced by the people.
He directed the concerned authorities to maintain close coordination and remove procedural bottlenecks so that all components of the project could progress on a fast-track basis.
The meeting also discussed the rapid expansion of tourism in Gilgit-Baltistan and its implications for the region's fragile ecosystem.
Ahsan Iqbal directed the Gilgit-Baltistan government to consider introducing an appropriate taxation and regulatory framework for tourism to generate additional revenue while ensuring sustainable and environmentally responsible growth of the sector.
The Minister cautioned that unplanned growth in tourism and construction could place considerable pressure on the fragile ecology of Gilgit-Baltistan. He directed that a comprehensive study on the tourism carrying capacity of the region be undertaken to determine the level of tourism that its natural environment can sustainably support.
He proposed that the Ministry of Kashmir Affairs and Gilgit-Baltistan, Ministry of Climate Change and the Gilgit-Baltistan government constitute a task force, with the support of relevant experts and institutions, including the Aga Khan Development Network, to undertake the study and formulate recommendations.
The Minister emphasised that a comprehensive mechanism was required to regulate tourism, discourage unplanned construction and preserve the natural environment and ecological balance of Gilgit-Baltistan.
He also directed that a committee comprising representatives and experts from the Federal Board of Revenue (FBR), Finance Division and the Gilgit-Baltistan government assist GB in developing and implementing an appropriate taxation framework for the tourism sector.
The meeting also deliberated upon the financing constraints affecting development in Gilgit-Baltistan. The Planning Minister stated that the Ministry of Planning had already recommended to the Prime Minister in February 2025 that Gilgit-Baltistan be provided a financing framework on the lines of the provinces under the National Finance Commission (NFC) mechanism.
Ahsan Iqbal said that the financing requirements of ongoing projects under the Public Sector Development Programme (PSDP) were significantly higher than the available fiscal space. He noted that against financing requirements of approximately Rs3 trillion for ongoing projects, around Rs1 trillion was available, resulting in delays in project execution and substantial cost escalation.
The Minister stressed that a sustainable solution required an appropriate financial framework under which Gilgit-Baltistan and Azad Jammu and Kashmir could receive equitable financial arrangements.
The Planning Minister further stated that, pending finalisation of the NFC Award, alternative financing arrangements should be examined to address the immediate development requirements of Gilgit-Baltistan.
Concluding the proceedings, Prof. Ahsan Iqbal directed that all decisions, recommendations and instructions emerging from the meeting be consolidated into an interim report within two weeks.
He stressed that the process should be completed within the stipulated timeframe so that the concerned ministries, departments and the Gilgit-Baltistan government could proceed with the required regulatory, administrative and development measures without further delay.
The Planning Minister reiterated the federal government's commitment to addressing the genuine development concerns of Gilgit-Baltistan through coordinated institutional action, effective policy interventions and accelerated implementation of development projects.
The meeting concluded with directions to all concerned ministries, departments and the Gilgit-Baltistan government to expedite work on the agreed measures, ensure inter-agency coordination and submit progress within the prescribed timelines.