The NHA has declared the Rs. 68.9 billion Lyari Elevated Freight Corridor in Karachi financially unviable, citing funding gaps and shifting focus to alternatives.
The National Highways Authority (NHA) has acknowledged that the proposed four-lane Lyari Elevated Freight Corridor in Karachi cannot move forward due to financial constraints. The matter came under discussion during a National Assembly Standing Committee meeting on the Economic Affairs Division, where officials confirmed that the scheme is no longer bankable.
According to estimates, the project carried a price tag of Rs. 68.9 billion. NHA representatives explained that it required both a substantial upfront Viability Gap Fund grant and operational loans covering nearly 35 percent of costs, making it unattractive for public-private partnership financing.
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As an alternative, the National Highways Authority is now considering upgrades to the Karachi Northern Bypass (KNB). Plans under review involve expanding the existing two-lane bypass into a modern four- to six-lane facility built to motorway standards, aimed at easing freight movement and reducing congestion.
Committee members, however, stressed the importance of the Lyari corridor for Pakistan’s economy. They recommended including the scheme in the Public Sector Development Program (PSDP) while calling to prioritize infrastructure projects on economic merit rather than political grounds.
