ISLAMABAD, Aug 5: Federal Minister for Planning, Development and Special Initiatives Prof. Ahsan Iqbal on Tuesday chaired a meeting of the Prime Minister's Review Committee on Gilgit-Baltistan, constituted on the directions of Prime Minister Muhammad Shehbaz Sharif to examine key financial, governance and development issues concerning the region.
The meeting reviewed a wide range of matters, including Gilgit-Baltistan's long-term financial sustainability, hydropower development, power sector reforms, climate resilience, digital connectivity, public service delivery and development priorities. The committee will finalize its recommendations for submission to the Prime Minister.
A key focus of the meeting was the development of a transparent resource-sharing mechanism for Gilgit-Baltistan, drawing on the principles of the National Finance Commission (NFC), to ensure a fair, equitable and predictable system of fiscal transfers.
Speaking on the occasion, Prof. Ahsan Iqbal supported the development of an NFC-based financial framework for Gilgit-Baltistan and Azad Jammu & Kashmir. To examine the proposed NFC-based financial framework, Prof. Ahsan Iqbal directed the constitution of a committee comprising the Chief Minister Gilgit-Baltistan, the Leader of the Opposition in the GB Assembly, the Minister for Kashmir Affairs & Gilgit-Baltistan, the Attorney General for Pakistan, representatives of the Ministries of Foreign Affairs and Law & Justice, and the Ministry of Inter-Provincial Coordination. The committee has been tasked with submitting its recommendations within a month to be further considered by the Prime Minister.
The committee was informed that the longstanding issue of wheat subsidy for Gilgit-Baltistan had been addressed and that the Federal Government continues to provide subsidy support to the region. It also reviewed the stabilization package for Gilgit-Baltistan and was informed that federal budgetary support to the region has increased by 87 percent since 2022. Representatives of the Gilgit-Baltistan Government appreciated the Federal Government's continued support for the region's development.
Federal Government has steadily increased development allocations for Gilgit-Baltistan under the Public Sector Development Programme (PSDP). The allocation rose from Rs132.851 billion in FY2024-25 to Rs150.4 billion in FY2025-26, and has been further enhanced to Rs157.5 billion for the current fiscal year 2026-27, reflecting the government's continued commitment to the region's development.
The meeting also reviewed challenges facing the power sector in Gilgit-Baltistan, including electricity shortages, demand and supply gaps, and transmission constraints. Participants discussed the need for a regional transmission grid, stronger representation of Gilgit-Baltistan in national energy institutions, and greater connectivity with the National Grid to improve the reliability of electricity supply across the region.
The Planning Minister said that work on the Regional Grid Gilgit-Baltistan Phase-I project is progressing steadily. Approved in FY 2023 at a total cost of Rs9.1 billion, the project has already achieved substantial progress and is expected to significantly improve power transmission and electricity supply across the region. Similarly another project with Cumulative Capacity of 100 MWP Distributed Solar Photovoltaic (DPV) Plants at Various Sites in Gilgit-Baltistan has been initiated in FY 2025 with the total cost of Rs. 24.9 Billion. The projects have been started to address the power shortages in Gilgit Baltistan region.
The Planning Minister also directed the constitution of a committee under the supervision of the Secretary, Ministry of Planning, Development and Special Initiatives, to review the status of ongoing development projects in Gilgit-Baltistan. The committee will identify bottlenecks affecting implementation and recommend measures to expedite project execution and ensure their timely completion.
The committee also discussed Gilgit-Baltistan's vast hydropower resources and agreed that the region possesses considerable potential to generate its own revenues by attracting private investment in hydropower projects under the Public-Private Partnership framework.
The Planning Minister also directed the formation of a committee, to be led by the Power Division and the Ministry of Water Resources, to formulate recommendations for the accelerated development of Gilgit-Baltistan's hydropower potential through the Public-Private Partnership (PPP) model. The committee will examine measures to attract private investment and expedite strategic hydropower and renewable energy projects in the region.
The Planning Minister observed that despite severe fiscal constraints, the Federal Government continues to allocate substantial resources to Gilgit-Baltistan every year. He noted that while the federal PSDP has declined from around Rs1 trillion in 2018 to about Rs800 billion despite growing development needs, significant allocations are still made for Gilgit-Baltistan, Azad Jammu & Kashmir and the merged districts.
The committee reaffirmed the Federal Government's commitment to promoting sustainable and inclusive development in Gilgit-Baltistan through institutional reforms, enhanced fiscal sustainability, infrastructure development, improved connectivity and the effective utilization of the region's immense natural and economic potential.
The meeting reviewed a wide range of matters, including Gilgit-Baltistan's long-term financial sustainability, hydropower development, power sector reforms, climate resilience, digital connectivity, public service delivery and development priorities. The committee will finalize its recommendations for submission to the Prime Minister.
A key focus of the meeting was the development of a transparent resource-sharing mechanism for Gilgit-Baltistan, drawing on the principles of the National Finance Commission (NFC), to ensure a fair, equitable and predictable system of fiscal transfers.
Speaking on the occasion, Prof. Ahsan Iqbal supported the development of an NFC-based financial framework for Gilgit-Baltistan and Azad Jammu & Kashmir. To examine the proposed NFC-based financial framework, Prof. Ahsan Iqbal directed the constitution of a committee comprising the Chief Minister Gilgit-Baltistan, the Leader of the Opposition in the GB Assembly, the Minister for Kashmir Affairs & Gilgit-Baltistan, the Attorney General for Pakistan, representatives of the Ministries of Foreign Affairs and Law & Justice, and the Ministry of Inter-Provincial Coordination. The committee has been tasked with submitting its recommendations within a month to be further considered by the Prime Minister.
The committee was informed that the longstanding issue of wheat subsidy for Gilgit-Baltistan had been addressed and that the Federal Government continues to provide subsidy support to the region. It also reviewed the stabilization package for Gilgit-Baltistan and was informed that federal budgetary support to the region has increased by 87 percent since 2022. Representatives of the Gilgit-Baltistan Government appreciated the Federal Government's continued support for the region's development.
Federal Government has steadily increased development allocations for Gilgit-Baltistan under the Public Sector Development Programme (PSDP). The allocation rose from Rs132.851 billion in FY2024-25 to Rs150.4 billion in FY2025-26, and has been further enhanced to Rs157.5 billion for the current fiscal year 2026-27, reflecting the government's continued commitment to the region's development.
The meeting also reviewed challenges facing the power sector in Gilgit-Baltistan, including electricity shortages, demand and supply gaps, and transmission constraints. Participants discussed the need for a regional transmission grid, stronger representation of Gilgit-Baltistan in national energy institutions, and greater connectivity with the National Grid to improve the reliability of electricity supply across the region.
The Planning Minister said that work on the Regional Grid Gilgit-Baltistan Phase-I project is progressing steadily. Approved in FY 2023 at a total cost of Rs9.1 billion, the project has already achieved substantial progress and is expected to significantly improve power transmission and electricity supply across the region. Similarly another project with Cumulative Capacity of 100 MWP Distributed Solar Photovoltaic (DPV) Plants at Various Sites in Gilgit-Baltistan has been initiated in FY 2025 with the total cost of Rs. 24.9 Billion. The projects have been started to address the power shortages in Gilgit Baltistan region.
The Planning Minister also directed the constitution of a committee under the supervision of the Secretary, Ministry of Planning, Development and Special Initiatives, to review the status of ongoing development projects in Gilgit-Baltistan. The committee will identify bottlenecks affecting implementation and recommend measures to expedite project execution and ensure their timely completion.
The committee also discussed Gilgit-Baltistan's vast hydropower resources and agreed that the region possesses considerable potential to generate its own revenues by attracting private investment in hydropower projects under the Public-Private Partnership framework.
The Planning Minister also directed the formation of a committee, to be led by the Power Division and the Ministry of Water Resources, to formulate recommendations for the accelerated development of Gilgit-Baltistan's hydropower potential through the Public-Private Partnership (PPP) model. The committee will examine measures to attract private investment and expedite strategic hydropower and renewable energy projects in the region.
The Planning Minister observed that despite severe fiscal constraints, the Federal Government continues to allocate substantial resources to Gilgit-Baltistan every year. He noted that while the federal PSDP has declined from around Rs1 trillion in 2018 to about Rs800 billion despite growing development needs, significant allocations are still made for Gilgit-Baltistan, Azad Jammu & Kashmir and the merged districts.
The committee reaffirmed the Federal Government's commitment to promoting sustainable and inclusive development in Gilgit-Baltistan through institutional reforms, enhanced fiscal sustainability, infrastructure development, improved connectivity and the effective utilization of the region's immense natural and economic potential.