Pakistan announces new motorway projects and NHA financial reforms

Federal Minister for Communications Abdul Aleem Khan has announced plans for a new motorway connecting Lahore and Rawalpindi, scheduled for completion by the end of 2027. The project aims to reduce the travel distance from 380km to 280km, potentially cutting travel time between Lahore and Islamabad from three and a half hours to two and a half hours. The route is expected to connect Gujranwala, Gujrat, Lalamusa, Kharian, and Jhelum.

Other infrastructure developments include the upcoming foundation stone laying for the Sukkur-Hyderabad Motorway, the expansion of the Faisalabad-Pindi Bhattian and Lahore-Sialkot motorways, and the extension of the Murree Expressway toward Muzaffarabad. Khan noted that Communications Ministry revenue has increased from Rs66 billion to Rs166 billion over approximately two and a half years.

In a separate meeting, Senator Ahad Cheema, Federal Minister for Economic Affairs, emphasized the necessity of a viable business plan to ensure the National Highway Authority’s (NHA) financial sustainability. Working with an Asian Development Bank consultant, the ministry is reviewing project appraisals and financing models to improve NHA performance. Cheema stressed that project selection must be based on commercial and economic viability and that external financing should not result in reduced Public Sector Development Program (PSDP) allocations.