Islamabad Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal on Tuesday outlined the government’s major infrastructure agenda for FY2026-27, announcing the launch of several road and rail projects, including the Karachi–Hyderabad M-9 expansion, the Sukkur–Hyderabad–Karachi (M-6) Motorway, the Chaman–Quetta–Karachi Highway, and the Main Line-1 (ML-1) railway project under the China-Pakistan Economic Corridor (CPEC).
Speaking to the media during the Ministry of Planning’s Monthly Development Update for June 2026, the minister said work on these projects would begin during the new fiscal year. He added that construction on the ML-1 project would start from the Rohri section, while the project’s groundbreaking ceremony is scheduled for January 2027.
Iqbal also announced the launch of the Karakoram Highway-II (KKH-II) project, which will replace an approximately 100-kilometre stretch of the existing Karakoram Highway expected to be submerged due to the construction of the Diamer-Bhasha Dam. The project aims to ensure uninterrupted trade connectivity between Pakistan and China.
He said the KKH-II project is estimated to cost PKR 200 billion.
The minister further announced the establishment of a Quantum Valley in Islamabad to promote advanced technologies, innovation and the development of a knowledge-based economy.
Highlighting another major road project, Iqbal said the Chaman–Quetta–Karachi Highway will cost an estimated PKR 400 billion and is expected to be completed within two years.
He added that the Asian Development Bank (ADB) will provide financing for the ML-1 railway project.
Commenting on the country’s economic indicators, the minister said workers’ remittances rose by 9.2% to USD 38.1 billion during July–May FY2025-26, while May 2026 recorded the highest-ever monthly inflow of USD 4.3 billion.
He also noted that services exports increased by 17.4%, driven primarily by the information technology sector, while the country’s current account remained in surplus due to rising remittances and expanding IT exports.
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