NHA targets Rs160 billion revenue to fund Pakistan’s road projects

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Communications Minister Abdul Aleem Khan says increased toll revenue will support highway development, while major projects aim to reduce travel time and strengthen regional trade connectivity.

Federal Minister for Communications Abdul Aleem Khan has announced plans to accelerate road infrastructure development across Pakistan by increasing the National Highway Authority’s (NHA) annual revenue target from Rs66 billion to Rs160 billion.

The authority’s expenditure has been capped at Rs50 billion for the current year, with additional funds generated through toll taxes and other sources expected to finance new roads and ongoing development projects.

Addressing the Lahore Chamber of Commerce and Industry (LCCI), the minister discussed highway development, financial management, industrial financing and regional trade connectivity.

He explained that a significant portion of the NHA’s income was spent on salaries, routine maintenance and emergency repairs to roads and bridges damaged by floods.

Khan also highlighted Rs224 billion allocated for ongoing projects under the 2024 Public Sector Development Programme (PSDP), noting that a substantial share was intended for national highway development in Balochistan.

Major Highway Projects to Improve Connectivity

The minister said a proposed route could reduce the distance between Lahore and Islamabad from approximately 380 kilometres to 280 kilometres.

The project is expected to improve access to Gujranwala, Gujrat, Lalamusa, Kharian and Jhelum, potentially cutting travel time from three and a half hours to two and a half hours. Completion is being pursued by next year.

Meanwhile, the Sialkot Motorway is being expanded from four lanes to six, with an additional Rs10 billion committed from NHA-generated resources.

The Lahore–Khyber Motorway project is targeted for completion in 2027, while the Balochistan Expressway is expected to improve access to remote areas and reduce road accident risks.

Khan credited additional toll revenue with helping make the Faisalabad road project possible, explaining that alternative funding constraints could otherwise have delayed the work.

Minister Seeks Relief for Industrial Businesses

The minister also urged banks to consider rescheduling loans for industrialists struggling with high borrowing costs. He said interest rates of around 25 percent made business operations extremely difficult and could prevent closed industrial units from restarting.

He assured business representatives that their proposals concerning industrial financing and ease of doing business would be presented to the prime minister.

LCCI Calls for Consultation on Toll Taxes

LCCI President Ali Hussam Asghar urged the government to revise business-related regulations and adopt enforcement measures that allow companies reasonable time to correct violations.

He also called for consultation with chambers of commerce before toll charges are increased, warning that higher fees raise freight costs and weaken business competitiveness.

Senior Vice President Sardar Usman Ghani stressed that reliable roads and better connections to industrial estates were essential for economic growth.

Khan further highlighted Pakistan’s potential to expand transit trade by transporting Chinese goods through Gwadar and Karachi to Iran and other regional markets, saying improved highways could strengthen the country’s role in regional commerce.