NHA Faces Major Budget Shortfall for Key Road Projects

Pakistan’s National Highways Authority (NHA) is facing a significant funding gap as it moves forward with critical road infrastructure projects across the country. Under the federal budget for 2025–26, the NHA has been allocated Rs. 20.5 billion — a figure that falls well below the Rs. 56.9 billion the authority had requested to keep pace with ongoing development and complete priority projects on schedule.

According to official documents, the 18 targeted road projects are already around 70% complete, but the limited funding means that some will now face fresh delays and cost overruns.

One of the most important undertakings is the 959-kilometre Karachi-Lahore Motorway (KLM) — a vital artery for Pakistan’s freight and passenger transport network. For this mega project, the NHA had sought Rs. 4.25 billion to cover land acquisition, compensation to affected communities, and the relocation of essential utilities. However, the government approved only Rs. 500 million, leaving a massive shortfall.

Another critical project, the 167 km Jaglot-Skardu Road (S-1), which is vital for connecting Gilgit-Baltistan and boosting tourism, requested Rs. 5.3 billion for expansion and improvement. Yet, only Rs. 1 billion has been approved, putting its timely completion in doubt.

The situation is similar for the planned motorway stretching from Burhan/Hakia on the M-1 to Dera Ismail Khan, which received just Rs. 500 million compared to the required Rs. 2.57 billion.

The two-lane highway between Basmia and Khuzdar (106 km) was allocated Rs. 2.5 billion — far short of the Rs. 7.23 billion estimated to finish the work properly. Likewise, the overhead bridge at Imamia Colony Railway Crossing in Shahdra, a notorious traffic bottleneck, got Rs. 200 million despite a demand for Rs. 863 million.

The important Gwadar-Ratodero Road (M-8), a crucial link in the China-Pakistan Economic Corridor (CPEC), secured Rs. 3 billion in funding, although Rs. 4.94 billion was originally requested.

On a positive note, a few projects did receive their full requested funding. These include the 54.8 km Awaran-Jhalijao Road (Rs. 1.04 billion), the dualization of the Old Bannu Road (Rs. 988 million), the Kot Pindi Das Interchange on the M-2 Motorway in Sheikhupura (Rs. 251 million), the Indus Highway (N-55) from Sarai Gamila to Kohat (Rs. 1.5 billion), and the bridge on River Ravi at Syed Wala (Rs. 324 million).

These fully funded projects offer some relief, but overall, the limited allocation is likely to slow down Pakistan’s infrastructure development goals. Experts warn that unfinished roads and extended construction timelines could hamper trade connectivity, economic growth, and local travel ease — especially for regions relying on new highways for access to markets and urban centers.

As Pakistan continues to balance development ambitions with fiscal constraints, the NHA Road Projects Budget Pakistan 2025 situation highlights the need for more robust planning and resource allocation to ensure the country’s road network keeps pace with growing demands.

Afsheen Gohar

Afsheen Gohar is a seasoned writer with a wealth of experience in crafting authentic and well-researched articles. Her dedication to delivering high-quality content is evident in her work, where she combines a passion for storytelling with a commitment to accuracy and depth. Afsheen’s writing reflects her ability to engage readers with compelling narratives while providing valuable insights on a diverse range of topics.