Govt earmarks Rs12.75bn for six major infrastructure projects

ISLAMABAD, Oct 14 (APP): The government has allocated Rs12.75 billion under the Public Sector Development Programme (PSDP) 2026-27 for six major infrastructure projects with a combined PC-I cost of Rs1.065 trillion.

According to official documents available with Wealth Pakistan, the allocation comprises Rs9.60 billion in local funding and Rs3.15 billion in foreign assistance. The projects include major highway and motorway schemes, tunnel-related infrastructure and land acquisition for road development.

The document shows that first-quarter releases for FY2026-27 totalled Rs199.4 million, while recorded utilisation stood at Rs53.48 million. Cumulative expenditure on the six projects up to June 2026 amounted to Rs505.698 million.

The largest allocation of Rs5 billion has been earmarked for the relocation of the Karakoram Highway between Thakot and Raikot due to the construction of dams on the Indus River.

The 241-kilometre project, listed as China EXIM-funded, has a PC-I cost of Rs502.6 billion, making it the most expensive of the six schemes. Its annual allocation includes Rs4.5 billion in local funding and Rs500 million in foreign assistance.

Another major scheme is the Lahore-Sahiwal-Bahawalnagar Motorway, which has been allocated Rs2 billion against a PC-I cost of Rs435.72 billion.

The project covers 295 kilometres of motorway construction, along with an 18-kilometre link connecting the Lahore Ring Road at Raja Jang Interchange to Kasur Road.

According to the document, the project’s revised PC-I is undergoing approval.

The revised Khyber Pass Economic Corridor (KPEC) project has received an allocation of Rs2.5 billion for FY2026-27.

The World Bank-funded scheme carries a PC-I cost of Rs77.91 billion, while cumulative expenditure up to June 2026 stood at Rs214.38 million.

Together, the Karakoram Highway relocation, Lahore-Sahiwal-Bahawalnagar Motorway and KPEC account for Rs9.5 billion, or approximately 74.5% of the total annual allocation for the six projects.

The remaining Rs3.25 billion has been allocated to three schemes involving the Lowari Tunnel, the Chakdara-Chitral Road and land acquisition for the Karakoram Highway relocation.

Of this amount, Rs2 billion has been earmarked for electrical and mechanical works and bridges associated with the Lowari Tunnel.

The project has a PC-I cost of Rs33.25 billion and is currently under procurement. It is the only scheme among the six for which the document records first-quarter releases and utilisation.

According to the figures, Rs199.4 million was released during the first quarter of FY2026-27, while expenditure utilisation amounted to Rs53.48 million.

The Chakdara-Chitral Road Project (N-45), Section III, covering the 48-kilometre Kalkatak-Chitral section, has been allocated Rs500 million against a PC-I cost of Rs10.95 billion.

The project, identified as EDCF/Korea-funded, will receive Rs50 million in local funding and Rs450 million in foreign assistance. Its current status is also listed as under procurement.

Meanwhile, Rs750 million has been allocated for land acquisition associated with the relocation of the Karakoram Highway between Thakot and Raikot.

The land-acquisition scheme has a PC-I cost of Rs4.13 billion and is listed as under process.

The document shows that three of the six projects are at the procurement stage, while the Lahore-Sahiwal-Bahawalnagar Motorway awaits approval of its revised PC-I.

The document also records combined liabilities of Rs155.683 million, alongside first-quarter utilisation of Rs53.48 million against releases of Rs199.4 million.

These figures provide a snapshot of the funding and implementation position of the six infrastructure projects under PSDP 2026-27.