Islamabad, Sep 2: The Public Sector Development Program (PSDP) 2024–25 allocation for the National Highways Authority (NHA) was cut by the government just two months into the fiscal year, from Rs. 180.284 billion to Rs. 161.264 billion, or about 12 percent, out of concern that it would impede or delay project execution and lead to cost escalation.
The funding for current programs was cut from Rs. 167.8 billion to Rs. 149.280 billion, while the funding for new programs was cut from Rs. 12.484 billion to Rs. 11.984 billion.
For the building of the 30-6 kilometer, 6-lane, split, walled Hyderabad-Sukkur Motorway, the government has only allotted Rs. 50 million on a Build Operate Transfer (BOT) basis. The estimated cost of this vital portion of the Peshawar-Karachi Motorway (PKM), which is still under construction, has risen from Rs. 308 billion to over Rs. 410 billion, a 33 percent increase from the original estimates.
A little over 16 percent more than the Rs. 156 billion allotted for the fiscal year 2023–24, the government had already set aside Rs. 180.284 billion for 104 projects under the PSDP 2024–25 for NHA.
According to official sources, NHA was initially given preliminary Indicative Budget Ceilings (IBC) under PSDP 2024–25 of Rs. 92 billion to carry out new and ongoing projects by the government. NHA, however, made a demand for Rs. 628 billion in opposition to about 100 new and continuing projects.
The National Economic Council (NEC) received a proposal from the Annual Plan Coordination Committee (APCC) for Rs. 180.284 billion for 104 projects under PSDP 2024–25 for NHA. There were proposals for 90 ongoing projects for Rs. 167.800 billion and 14 new projects at Rs. 12.484 billion.
Under the PSDP 2024–25, the NHA had anticipated receiving about Rs. 200 billion; however, the APCC had suggested Rs. 180.284 billion.The throw-forward of NHA, which has already accumulated to Rs. 2.226 trillion, is anticipated to rise further with the most recent drop in PSDP 2024–25 due to insufficient budgetary allocations in contrast to real demands.
Aleem Khan, the federal minister for communications, recently told the National Assembly Standing Committee on Communications that the organization is experiencing a significant backlog in loans due to fewer allocations, which are taking the form of put forward and building up. Additionally, he forewarned that the lack of funding for the industry would prevent projects from being finished on schedule, costing the nation money.
