- NHA has undertaken four restructuring initiatives since 2018.
- Hyderabad-Sukkur Motorway physical work to begin September 2026.
- Cabinet’s 2021 decision on NHA business plan largely unimplemented.
ISLAMABAD: A Senate standing committee directed the National Highway Authority to submit within 10 days a comprehensive debt restructuring proposal, raising serious concerns over the authority’s mounting debt burden and the continued practice of financing public service roads through loans rather than grants, The News reported.
A meeting of the Senate Standing Committee on Planning, Development and Special Initiatives was held on Wednesday at the Parliament House under the chairpersonship of Senator Qurratulain Marri.
At the outset, the agenda item regarding the briefing by the Ministry of Planning, Development and Special Initiatives secretary on a resolution, moved by Senator Muhammad Talha Mahmood, was deferred, which would be taken up in the next meeting.
The committee reviewed PSDP-funded infrastructure projects, including Cash Development Loans (CDL) extended to the National Highway Authority (NHA), as well as implementation of the Prime Minister’s National Health Programme under the PSDP.
The chairperson observed that roads constructed as a public service obligation should preferably be financed through grants rather than loans. The committee took up the matter after noting that although PSDP allocates funds for road infrastructure projects, a substantial portion is deducted for debt servicing, particularly interest payments, resulting in delays in the execution of road projects.
The NHA officials stated that infrastructure projects are financed through the CDL and foreign loans, routed through the Economic Affairs Division. The committee was informed that NHA’s debt portfolio comprises both principal liabilities and accumulated interest, while substantial deductions have been made from PSDP allocations for debt servicing over the years, with a significant portion utilised for interest payments.
Moreover, the committee was informed that NHA had undertaken four restructuring initiatives since 2018. Officials stated that the current proposal seeks capitalisation of outstanding mark-up on CDL and foreign loans until completion of the ADB-supported State-Owned Enterprise Transformation Programme, while the Finance Division has linked any moratorium to completion of debt mapping, third-party evaluation of commercially feasible projects, restructuring proposals and approval by the competent forum before 31 December 2026.
The committee observed that despite the federal cabinet’s 20 January 2021 decision on preparing a comprehensive business plan and converting non-commercial projects into grants, little progress had been made.
The chairperson directed the NHA to submit within 10 days a comprehensive debt restructuring proposal, the implementation status of cabinet and ECC decisions, project classification, and the future financing mechanism.
The NHA officials informed the committee that toll revenue currently amounts to approximately Rs120 billion annually, which is utilised for road maintenance, salaries and operational expenses.
Officials explained that only motorways and commercially viable corridors generate sustainable revenue, whereas roads in remote and mountainous regions including Gilgit-Baltistan, Chitral, Kashmir and other less-developed areas are constructed as public service obligations and cannot recover their costs through toll collection. Thereafter, the committee also reviewed the progress of major motorway projects.
The NHA informed that work on the Hyderabad-Sukkur (M-6) Motorway has been divided into five segments, with financing arrangements completed for two segments and physical work expected to commence on additional sections by September 2026. Officials also briefed the committee on progress on the Sambrial-Kharian Motorway, Rawalpindi Ring Road, improvements on N-55, and other ongoing projects.
The committee directed the NHA to present a comprehensive progress report on all major motorway and highway projects, including financing arrangements, implementation timelines and the status of commercial and foreign-funded loans, in its next meeting.
After detailed deliberations, the committee directed the National Highway Authority to submit within 10 days a comprehensive report on implementation of previous cabinet decisions, project classification, debt restructuring proposals and financing mechanisms for ongoing and future infrastructure projects.
The committee also directed the Ministry of National Health Services, Regulations and Coordination to continue consultations with provincial governments to strengthen universal health coverage, improve primary healthcare integration and ensure sustainable implementation of the Prime Minister’s National Health Programme.
