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NHA’s Throw-Forward Surges to Rs. 2.2 Trillion

5 min read
Legal Expert
NHA’s Throw-Forward Surges to Rs. 2.2 Trillion
The throw-forward of the National Highways Authority (NHA) has accumulated to Rs. 2.226 trillion, as a result of inadequate budgetary allocations contrary to the actual demands, which is severely hampering/delaying projects execution and cost escalation. This was revealed before the National Assembly Standing Committee on Communications which met with Aijaz Hussain Jakhrani on Tuesday. The committee was also informed that the estimated cost of Sukkur-Hyderabad Motorway project, a crucial stretch for the completion of the Peshawar-Karachi Motorway (PKM) which is yet to come into implementation has increased by around 33 percent from the initial estimates of Rs 308 billion to more than Rs 410 billion. Federal Minister for Communications Aleem Khan informed that lower allocation is resulting in accumulating huge back lock in the shape of throw forward and filing up of loans for the organization. Khan also warned that the funds allocated for the sector is less due to which the projects cannot be completed on time, resulting in loss to the country. Secretary Communications informed the Committee that there are five subsidiary organizations working under the Ministry of Communications, the largest of which are Postal Services and Postal Life Insurance Company Limited and NHA. The committee was also informed that the revenue collection of National Highway Authority (NHA) would increase from Rs. 64 billion in 2023-24 to Rs. 102 billion by end 2024-25. Informing about the objectives, performance, budget and schemes in detail, he said that the total length of roads in Pakistan is 500,000 km, of which 14,480 km are motorways and highways. The parliamentary panel was informed that 42 percent of the country’s network is in Balochistan, but unfortunately no income from it, which hampers the plans to repair and improve the roads. There are 900 kilometers of roads and only one toll plaza in the Gilgit-Baltistan. Significant income is generated from toll plazas all over the world. He said that overloaded transport has been banned from entering motorways and highways. Last year, toll tax of Rs. 64 billion was collected on highways and motorways, which will now be increased to more than Rs. 102 billion. Secretary Communications informed that funds are needed for the completion of the Sukkur-Hyderabad Motorway and Rs. 410 billion is required for this project. The Committee decided to invite Chief Minister Sindh and Federal Minister for Planning to set together and find way forward for initiating this important project. Road infrastructure is damaged due to overload. The Standing Committee was told by Secretary Communication that there are some international agreements regarding roads, including 10 mutual agreements signed by Iran, China, Turkey, Russia, Tajikistan, Including India and Afghanistan etc. The agreement with India is still suspended. There are also two multinational agreements and two International Convention Agreements. The Standing Committee was informed that Rs. 180 billion was indicated for 105 NHA projects in the PSDP 2024-25, out of which 90 are ongoing and 15 are new schemes.
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Written by the expert legal team at Javid Law Associates. Our team specializes in corporate law, tax compliance, and business registration services across Pakistan.

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