By The Khyber Pakhtunkhwa (KP) government is actively considering a Rs 5.3 billion bridge financing plan to ensure the timely completion of the Peshawar Northern Bypass, a major road infrastructure project that has remained incomplete for the past 17 years due to funding constraints and administrative delays.
The Peshawar Northern Bypass bridge financing proposal is aimed at addressing the immediate funding gap that threatens further delays and cost escalation of the project, which is crucial for completing the Ring Road around Peshawar.
17-Year Delay Due to Funding Shortages
The Northern Bypass spans over 30 kilometers and is designed to divert heavy and commercial traffic away from Peshawar’s congested city center. Despite its strategic importance, the project has suffered prolonged delays mainly due to irregular and insufficient allocations from the federal Public Sector Development Programme (PSDP).
Originally approved at an estimated cost of Rs 3 billion, the project’s total cost has surged to nearly Rs 27 billion over the years. Officials say inflation, construction delays, and inconsistent funding are the primary reasons behind this massive increase.
Only Rs 500 Million Allocated This Fiscal Year
According to government sources, the project now requires more than Rs 5 billion to complete its final stages. However, only Rs 500 million was allocated in the current fiscal year, sparking concerns within the provincial capital over possible further delays.
Experts warn that without immediate financial intervention, the project could face additional cost overruns, placing further strain on public finances.
Provincial Funds to Be Provided as Loan to NHA
Adviser to the KP Chief Minister on Finance, Muzzammil Aslam, confirmed that the provincial government is reviewing a proposal to provide the required funds through a bridge financing arrangement. He said the matter has also been discussed with Chief Minister Mohammad Sohail Afridi, who supports the use of provincial resources to complete the project on time.
Under the proposal, the KP government would extend the funds as a loan to the National Highway Authority (NHA), which would repay the amount at a later stage. A long-pending high-level meeting is expected soon to finalize the decision.
Economic and Traffic Benefits for Peshawar
Once completed, the Peshawar Northern Bypass is expected to significantly reduce traffic congestion, improve road safety, lower travel time, and enhance regional trade connectivity. The project is seen as critical for economic activity and urban mobility in Peshawar and surrounding areas.
If approved, the bridge financing plan could prove to be a turning point, demonstrating the KP government’s commitment to completing long-delayed infrastructure projects despite federal funding challenges.
