Azerbaijan offers $1 billion loan to support the construction of Sukkur-Hyderabad motorway

In a significant development for Pakistan’s infrastructure sector, Azerbaijan has extended a $1 billion cash deposit loan to support the construction of the Sukkur-Hyderabad motorway (M-6). This funding is part of a broader initiative aimed at enhancing connectivity and economic growth in the region.

Strategic Investment in Pakistan’s Motorway Network

The loan offer comes in response to a request from Prime Minister Shehbaz Sharif, who sought financial assistance for two key motorway projects:

• Sukkur-Hyderabad Motorway (M-6)

• Hyderabad-Karachi Motorway (M-9)

Azerbaijan has proposed depositing the $1 billion loan through its State Oil Fund into the State Bank of Pakistan (SBP). The federal government would then channel the funds to the National Highway Authority (NHA) to finance motorway construction.

Enhancing Connectivity and Economic Growth

The construction of these motorways is expected to reduce travel time, boost trade, and improve transportation efficiency between key cities.

• The Sukkur-Hyderabad (M-6) motorway is a vital missing link in the Karachi-Peshawar Motorway (KLM), ensuring seamless connectivity across Pakistan.

• The Hyderabad-Karachi (M-9) motorway will provide an alternative route between the two major cities, further strengthening economic ties.

Azerbaijan-Pakistan Relations Strengthen

Azerbaijan’s financial support highlights the growing strategic and economic partnership between the two nations. This investment underscores Azerbaijan’s confidence in Pakistan’s infrastructure development and is expected to open doors for further collaboration in energy, trade, and investment sectors.

The funding arrangement is still under discussion, with officials from both sides working on the final terms and execution plan. If successfully implemented, this initiative could serve as a model for future international infrastructure financing in Pakistan.

Afsheen Gohar

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