NGMS Core project lagging behind schedule, funds remain unutilised

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MUZAFFARABAD: The goal of the NGMS Core Upgradation (2024–2026) project was to improve the NGMS PR/DR Core Network in Gilgit Baltistan (GB) and Azad Jammu and Kashmir (AJK). Two years into the project’s schedule, barely 1% of the money has been used, indicating extremely low financial development.

 

The NGMS Core upgradation programme

The ‘NGMS Core Upgradation’ project is a programme to update and improve the fundamental features and infrastructure of a system called ‘Next Generation Managed Services (NGMS)’. This generally means modernizing IT systems to increase the productivity, dependability, and security of an organization through new procedures and technologies.

While physical progress stands at 10%, a significant portion of the total budget of 715 million rupees remains unutilised, and 615 million rupees is earmarked for Fiscal Year (FY) 2025-26. The ultimate objective of this project is to improve teledensity and telecom services, but delays in releasing funds can create hurdles toward completion on time and spoil overall infrastructure development.

Comparably, the Expansion of Cellular Services in AJK and GB (Phase IV) 2024-2027, which involves the installation of 28 new cellular sites with civil infrastructure, has made only 2% financial progress while making 10% physical progress. Just 4.125 million of the 1,997 million total cost has been used thus far, and an additional 1,000 million is planned for FY 2025–2026.

This project has a lot to do with promoting mobile connectivity across remote areas while developing tourism with the vision in mind of the Government of Pakistan. However, the delayed finance execution raises major concerns over the completion of its infrastructure expansion or not.

Overall, the implementation and use of funds for both projects are sluggish. This could make it difficult to successfully finish the project by the deadlines. Because of the enormous amount of work and the heavy reliance on big budget allocations for fiscal year 2025–2026, faster execution and streamlined money release are necessary.

As these initiatives are of paramount importance to enhance digital connectivity, upgrade telecom infrastructure, and support economic activities such as tourism, there is a need to expedite the progress in order not to suffer cost overruns and achieve the project timelines.

Earlier in the year 2024, the federal government had allocated 5.394 billion rupees for five new IT and telecommunication projects for the fiscal year 2024–2025 under the Public Sector Development Program (PSDP). The programs included the National Semiconductor HR Development Program Phase-I, the Digital Economy Enhancement Project, the Expansion of Cellular Services in AJK and GB Phase-IV, the NGMS Core Upgrade, and the Revamping of the IT Industry Landscape.

The greatest amount, which was 3.5 billion rupees, was allocated as a foreign loan for the Digital Economy Enhancement Project, which was supported by the World Bank. The extension of cellular services in AJK and GB Phase-IV was also allocated 194 million rupees. One hundred million rupees went to the NGMS Core Upgradation project.

The IT Wing manages the National Semiconductor HR Development Program Phase I, which is valued at 800 million rupees. The proposal was to utilize this project of 800 million rupees for the rejuvenation of the IT sector by the Pakistan Software Export Board (PSEB). According to reports of Ecommerce.com.pk, which is the South Asian e-commerce-based news industry, these projects were meant to place Pakistan’s telecom and IT sectors far ahead.

The relevant authorities should take notice of this slow progression. recently the Prime Minister of Azad Jammu and Kashmir scrutinised critical projects facilitation and the state of public service facilities and urged for the betterment. “The timely completion of the Jagran Hydel Project is key to Azad Kashmir’s prosperity,” said Chaudhry Anwar-ul-Haq, he further added “I am personally overseeing the project to ensure its timely completion,” hinting at its completion soon. Similar attention should be paid to technological projects too.

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