The Khyber Pakhtunkhwa (KP) government has agreed to arrange bridge financing of PKR 4 billion to accelerate the completion of the long-delayed Northern Bypass in Peshawar, officials said. The decision was made during a meeting chaired by Chief Minister Sohail Afridi on Wednesday.
The meeting was attended by the chairperson of the Prime Minister’s Inspection Team, retired Brigadier Muzaffar Ali Ranjha, KP finance adviser Muzzammil Aslam, Peshawar Commissioner Riaz Khan Mehsud, and other relevant officials.
The Northern Bypass, spanning over 30 kilometers and intended to complete the Ring Road around Peshawar, has faced multiple delays over the past 17 years, largely due to insufficient releases from the Federal Public Sector Development Programme (PSDP) and other funding issues.
Officials said the KP government will provide PKR 4 billion through bank guarantees as bridge financing and will also allocate PKR 200 million from its own resources for the construction of two culverts on the bypass, costing PKR 100 million each.
The National Highway Authority (NHA) has estimated that the project now requires PKR 8 billion to complete due to cost escalations. KP officials noted that the delayed releases from the federal government were the primary reason for the prolonged construction and said the Centre should bear the cost escalation.
Both sides agreed to hold another meeting early next week to finalize funding arrangements, with participation from the PM Inspection Team, KP finance adviser, Peshawar Commissioner, and NHA officials.
Chief Minister Afridi emphasized the importance of the project for Peshawar, stating that the KP government will provide “every possible support” to ensure its timely completion. He added that the bypass will not only facilitate commuters but also boost trade activities in the region.
NHA officials confirmed that the project is now expected to be completed by June 2026. Since its inception, the cost of the bypass has risen from PKR 3 billion to PKR 27 billion due to slow federal funding releases.
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