DNA
ISLAMABAD, Aug 21 (DNA):Federal Parliamentary Secretary for Communications Gul Asghar Khan on Friday informed the National Assembly that the government had accorded top priority to the Karachi-Hyderabad motorway project and expected it to be completed by 2028.
Responding to questions during Question Hour, he said the government had reviewed the reasons behind the delay in the project, which had remained stalled for nearly three decades. The project had been divided into five sections of around 50 kilometres each to facilitate investment.
The parliamentary secretary said the project required an investment of more than $400 million.
However, no investor had previously been willing to finance it, while the government also lacked sufficient funds for the purpose.
He said all five sections were floated internationally to attract investment. Three sections had attracted investment through different financing arrangements, including the Islamic Development Bank, while the procurement process for some sections was nearing completion.
Gul Asghar said the Frontier Works Organization (FWO) had shown interest in two sections. He added that all five sections were expected to be completed by 2028.
He said the existing M-9 would continue to serve as an expressway, while the government was working on a new motorway, M-10, to provide a direct Karachi-
Hyderabad connection.
The feasibility work for the M-10 had been completed, he said, adding that the government was working to bypass the existing route and establish a direct motorway link between Karachi and Hyderabad.
Gul Asghar said the National Highway Authority (NHA) was also maintaining the N-145 route from Chitral City to Dora Pass.
He said the 82.5-kilometre route started from Chitral City at km 0+000, passed through Garam Chashma and terminated at Dora Pass at km 82+500.
He said the route had been federalised a few years ago after being transferred from the Khyber Pakhtunkhwa Communication and Works Department.
The parliamentary secretary said the N-145 was an extremely narrow road. Much of it comprised an earthen track and was highly prone to landslides during rainfall.
He said the road section from km 0+000 to 82+000 would be maintained through eight routine maintenance contracts at an estimated cost of Rs44.145 million.
He added that improvement work on the existing road section from km 15+000 to 45+000 was in progress under a contract worth Rs219 million.
Gul Asghar said the 153-kilometre Chitral-Booni-Mastuj-Shandur Road (N-140) had been approved for construction under the Public Sector Development Programme (PSDP).
The project was divided into four contract packages and was being implemented by the NHA after the road was transferred from the Khyber Pakhtunkhwa government.
He said the project was approved in 2020, while its revised PC-I cost stood at Rs17.783 billion. Against the approved cost, Rs8.2 billion had so far been released.
The PSDP allocation for FY2025-26 was Rs1.5 billion, while overall physical progress of the project stood at around 37.7 per cent.
Package-I from Chitral to Prait had achieved 45.35 per cent progress, Package-II from Prait to Booni 34.40 per cent, Package-III from Booni to Shaidas 38.16 per
cent and Package-IV from Shaidas to Shandur 29.78 per cent.
Gul Asghar said the project had faced delays due to extraordinary floods in 2022, difficult mountainous terrain, funding constraints and delays in obtaining Mines and Minerals approvals and other statutory clearances.
He said contractual issues with contractors had been amicably resolved. Extension of Time had been approved by the competent authority and contractors had been fully remobilised.
Construction activities were now in progress, he said, adding that the project was targeted for completion by December 2026, subject to timely availability of PSDP funds and resolution of remaining land acquisition issues.
Gul Asghar said NHA’s toll revenue increased from Rs64.430 billion in FY2024-25 to Rs85.550 billion in FY2025-26.
He said the NHA had adopted several measures to ensure transparency in toll revenue collection.
The National Transport Research Centre (NTRC), as a third-party validator, conducted traffic counts to determine the reserve price of toll plazas for procurement through e-bidding or open auction.
The auctions were advertised through newspapers and the NHA website to ensure wider participation and transparency, he added.
He said the highest bidder was declared successful after an open auction and an operation and maintenance contract was executed for the relevant financial year.
Toll plazas were offered through e-bidding or open auction under the applicable PPRA Rules to maximise revenue generation, he said.
The operator, under the Net Guaranteed Revenue arrangement, was required to furnish security equivalent to one month’s Net Guaranteed Revenue
instalment and deposit the first monthly instalment in advance.
He said a penalty of Rs500,000 per occurrence was imposed for overcharging under the contract agreement.
He added that toll rates were prominently displayed at toll plazas and operators were required to issue toll tax slips to commuters according to vehicle category.
The parliamentary secretary clarified that the Sialkot (Sambrial)-Kharian Motorway was not scheduled for completion in 2023. It was originally planned for completion within two years, by 2024.
He said the project was delayed due to realignment following a hydraulic model study of the proposed motorway bridge over the Chenab River, hyperinflation and conversion of the motorway from four to six lanes.
These factors resulted in renegotiation of the public-private partnership agreement and delayed execution of the project, he said, adding that construction activities were halted and allocated funds withheld.
Gul Asghar rejected any suggestion that the alignment had been altered to serve personal interests.
He said all alignment options had been developed in accordance with international engineering standards and evaluated on technical, economic, environmental and social considerations.
He said the selected alignment complied with AASHTO standards and did not pose any safety risk.
He added that the alignment had been examined by concessionaire M/s SKIM (Pvt) Ltd and the design consultant to ensure a safe distance from the airport without affecting its operations or safety.
He said multiple alignment options had been prepared by design consultant M/s Zeeruk (Pvt) Ltd and evaluated by the Independent Engineer appointed for the project.
The final alignment was approved by the Central Development Working Party (CDWP) on May 5, 2023, he added.
Gul Asghar said the original PC-I for the Lahore-Bahawalnagar Motorway was approved by the Executive Committee of the National Economic Council (ECNEC) on July 19, 2023, at an estimated cost of Rs263.796 billion based on CSR 2022.
He said following completion of the detailed design and revision of cost estimates according to CSR 2025, a revised PC-I amounting to Rs406.914 billion had been submitted for approval by CDWP/ECNEC.
He said the increase was due to revision of cost estimates after detailed design rather than an unexplained increase in the original project scope.
Regarding concerns that the project could jeopardise the viability or upgradation of the CPEC Mainline-I (ML-I), he said the matter pertained to the Ministry of Planning, Development and Special Initiatives.
He also said the question regarding the National Fiscal Pact and federal financing of provincial projects pertained to the Planning Ministry.
The secretary said a meeting held on March 5, 2026, had directed that Package-I, Phase-1A, covering 18.5 kilometres, would be executed by NHA with government financing.
He said viable sections would be developed through the PPP mode, while NHA would arrange its share through its revenue as Viability Gap Funding for sections considered viable under PPP.
For sections found non-viable under PPP, NHA would explore alternative financing options, including International Financial Institutions and government funding, subject to availability.
He said the originally approved alignment would be retained because its estimated cost was lower than that of the proposed new alignment.
Accordingly, the revised PC-I based on the original alignment, with an estimated cost of Rs406.914 billion under CSR 2025, was submitted for approval by CDWP/ECNEC.
He said CDWP, in its meeting on June 24, 2026, recommended the revised PC-I for approval by ECNEC.
The commercial feasibility study to assess the viability of sections under PPP mode was currently underway and was expected to be completed by August 30, 2026, he added.
Meanwhile, NHA had requested the Economic Affairs Division to approach International Financial Institutions for financing the remaining sections of the Lahore-Sahiwal-Bahawalnagar Motorway, he said, adding that a response was awaited.
Gul Asghar said the NHA generated and utilised its own funds for development and maintenance activities under its legal and financial framework.
He said the authority largely relied on revenue generated through its own sources and did not receive regular government funding for its operations.
He added that funds provided by the government to NHA were generally non-refundable.
Regarding Balochistan’s share in NHA development funds, he said the authority had allocated around Rs109 billion during the last year.
He said a major portion of NHA revenue came from toll collections, fines and motorway fines, with Punjab generating the highest revenue, followed by Sindh.
He explained that NHA generally followed a policy of utilising revenue in areas where it was collected, while funds generated in Punjab and Sindh were subsequently allocated to other provinces according to their requirements.
Gul Asghar said Balochistan faced particular difficulties in generating toll revenue as authorities often faced resistance in establishing toll plazas in the province.
He said some toll plazas, once established, were also vandalised, affecting revenue generation.
He said the government had provided funds to Balochistan for development projects through the PSDP, including funds for important road links.
