Pakistan Accelerates Highway Network Expansion to Improve China-Pakistan Economic Corridor Logistics Efficiency
Pakistan's Federal Minister for Communications Abdul Aleem Khan announced that the National Highway Authority (NHA) is targeting annual revenue of 160 billion rupees in the current fiscal year, up from 66 billion rupees when he took office, and will use the increased revenue to support infrastructure construction. The Sukkur-Hyderabad Motorway (M-6) is scheduled to break ground in November, with an estimated total cost of 359 billion rupees, and after completion, cargo from western China to the Arabian Sea is expected to be reduced to 3-4 days. More than 70% of the relevant sector's Public Sector Development Programme (PSDP) funds will flow to Balochistan Province for the upgrading of the N-25 highway.
Federal Minister for Communications Abdul Aleem Khan presented the NHA's operational and infrastructure expansion plans at the Lahore Chamber of Commerce and Industry (LCCI), placing revenue growth and expenditure control at the core of the government's infrastructure strategy. He stated that the NHA is targeting annual revenue of 160 billion rupees in the current fiscal year, compared with 66 billion rupees when he assumed office approximately two and a half years ago. The authority also plans to reduce operating expenses from 64 billion rupees to 50 billion rupees to free up more funds for infrastructure development .
According to figures disclosed at a federal government meeting, the NHA's revenue increased from 109 billion rupees in the previous fiscal year to 130 billion rupees, with this fiscal year's target set at 160 billion rupees. Prime Minister Shehbaz Sharif has ordered a third-party audit of all NHA projects and has requested a PPP strategy for motorways and expressways to improve the efficiency of public funds . Minister Aleem Khan stated that several road projects, including the Faisalabad-Pindi Bhattian link and the Multan-Lodhran road, are being financed through the NHA's own resources and toll revenue rather than federal or provincial development budgets, with the aim of reducing reliance on government allocations .
The most significant project in this expansion plan is the Sukkur-Hyderabad Motorway (M-6), marking the formal commencement of construction on this 306-kilometer motorway after a 30-year delay. The project has been divided into five sections with an estimated total cost of 359 billion rupees. Sections I (Hyderabad-Tando Adam) and II (Tando Adam-Nawabshah) will be implemented under a public-private partnership (PPP) model, with tenders planned for November 6, 2026, bids due by December 30, and concession award targeted for February 4, 2027 . The Islamic Development Bank has signed a $475 million loan agreement for Sections IV and V, while the OPEC Fund board has approved $230 million for Section III .
From a logistics efficiency perspective, Minister Aleem Khan emphasized the potential role of Pakistan's road network in connecting western China with the Arabian Sea. He noted that the maritime route from eastern China to Gulf destinations can take up to 30 days, whereas cargo from western China transiting through Pakistan could reach the Arabian Sea in 3-4 days . The proposed Sukkur-Hyderabad-Karachi motorway is regarded as a key link strengthening the connection between northern trade routes and Karachi Port, with the Karachi Port approach section planned as an eight-lane corridor to accommodate commercial traffic and heavy freight .
Balochistan Province is the primary recipient of road investment in this plan. Minister Aleem Khan stated that more than 70% of the relevant sector's current PSDP allocation is being directed to Balochistan, with the N-25 highway (Karachi-Quetta) upgrading project as a priority. Official data show that since the 2022-23 fiscal year, the federal government has allocated more than 310 billion rupees for nine CPEC road projects in western Balochistan, with cumulative releases and expenditures exceeding 163 billion rupees. Among these, the Khuzdar-Kuchlak section of N-25 received the largest single allocation of 82.6 billion rupees .
Minister Aleem Khan also raised the issue of vehicle overloading, identifying it as a major cause of premature deterioration of national highways. He stated that roads designed with a 20-year lifespan may suffer severe damage within two years in cases of repeated overloading. Strict enforcement of axle-load limits will extend road lifespan, reduce maintenance costs, and protect transport operators from additional expenses caused by deteriorating infrastructure . This measure aligns with the NHA's goal of financial self-sufficiency, as reducing maintenance expenditures will directly improve the authority's net revenue.
In terms of institutional reform, the NHA is pushing to transform from a financially dependent agency into a self-sustaining entity. Minister Aleem Khan co-chaired a high-level meeting with the Prime Minister's Advisor on Privatization, Muhammad Ali, to assess the financial feasibility and commercial prospects of highway networks, exploring the introduction of private sector participation . The proposed Mansehra-Kaghan-Naran-Jalkhad-Chilas route is regarded as a potential overland corridor connecting western China with Pakistani seaports, and its alignment with CPEC's western route has strategic implications .
It should be noted that some of the aforementioned plans are still at the announcement or planning stage. The final routes, timelines, financing arrangements, and actual transit time savings for the Mansehra-Kaghan route and the Sukkur-Hyderabad-Karachi motorway extension still require verification through detailed feasibility studies and implementation plans. The M-6 groundbreaking ceremony has been confirmed for November, but the specific date has not been finalized . The effectiveness of NHA's revenue growth and expenditure control will also need to be tested in practice, particularly under the premise of ensuring project quality, where the third-party audit findings and rectification will directly affect the actual efficiency of subsequent investments .
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