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P3A Approves Two Major Motorway Projects to Boost Regional Connectivity in Punjab

July 6, 2025
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The Board of Directors of the Public Private Partnership Authority (P3A) has approved two significant motorway projects aimed at transforming regional connectivity and streamlining travel across Punjab. The decision came during the Authority’s 39th board meeting chaired by Federal Minister for Planning and Development Ahsan Iqbal.

Sialkot–Kharian Motorway: Enhanced Route for Industrial Growth

One of the key approvals was for the revised commercial structure of the Sialkot–Kharian Motorway project. This 69-kilometer route will be expanded to a six-lane motorway under the public-private partnership (PPP) model. The upgraded corridor is part of a broader plan to strengthen road infrastructure in line with recommendations from the Special Investment Facilitation Council (SIFC).

Once operational, the improved Sialkot–Kharian Motorway is expected to significantly boost mobility for commuters and freight transport alike, supporting industrial growth and enhancing access to domestic and export markets in the region.

Kharian–Rawalpindi Motorway: A New Six-Lane Expressway

The board also gave the go-ahead for the Kharian–Rawalpindi Motorway, a new 117.6-kilometer six-lane greenfield expressway. This project will be developed under the Build-Operate-Transfer (BOT) model, with an estimated cost of Rs. 202.61 billion, including Rs. 40 billion in Viability Gap Funding (VGF) to make the project financially feasible for private investors.

The Kharian–Rawalpindi Motorway will be awarded through international competitive bidding to ensure transparency and attract reputable developers. Upon completion, the new motorway will reduce travel time between Rawalpindi and central Punjab, easing the flow of goods and passengers between key economic hubs.

Boost to Regional Trade and Mobility

Both projects align with the government’s broader strategy to improve transport infrastructure, reduce congestion, and support economic expansion through improved connectivity. The upgraded and newly constructed motorways are expected to facilitate smoother trade routes, enhance passenger travel, and encourage industrial investments along the corridors.

With these approvals, the P3A continues to strengthen Pakistan’s road network by leveraging public-private partnerships, helping to bridge the infrastructure financing gap while delivering modern, efficient transport solutions.


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