Islamabad: The federal government has allocated PKR 100 billion from the petroleum development levy to the National Highway Authority (NHA) for the development and dualisation of major highways in Balochistan. The allocation, however, falls significantly short of the PKR 160.2 billion requested by the NHA for the ongoing fiscal year under the Public Sector Development Programme (PSDP).
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According to official NHA documents, the allocated funds will be used for three major highway projects in the province. These include the dualisation of the 330.52-kilometre Khuzdar-Kuchlak Section (N-25), which has been allocated PKR 34 billion against the requested PKR 50.8 billion.
Another PKR 33 billion has been earmarked for the dualisation and rehabilitation of the 273-kilometre Karachi-Quetta-Chaman Road (N-25), though the NHA had asked for PKR 52.5 billion. Similarly, the 187-kilometre Kararo-Wadh and Kuchlak-Chaman sections will receive PKR 33 billion, short of the PKR 56.9 billion initially requested.
The NHA is currently managing a portfolio of highway and road infrastructure projects worth PKR 2,200 billion across the country. For FY2025–26, it submitted 161 project proposals to the federal government but received approval for only 105, with a total allocation of PKR 227 billion.
Due to recurring funding constraints, the NHA has significantly increased its own revenue generation. In FY2024–25, it raised PKR 64.8 billion through toll collection and other sources, compared to PKR 32 billion in the previous fiscal year.
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In April, Prime Minister Shehbaz Sharif announced that a portion of the savings generated from falling international oil prices would be diverted to critical infrastructure projects in Balochistan, including the reconstruction of the N-25 highway and Phase II of the Kachhi Canal. The reconstruction of the N-25, often dubbed the “deadly road” due to its high fatality rate, was initially approved in FY2022–23 as part of a PKR 300 billion initiative but has since seen limited progress due to budgetary delays.