Senate panel told: NHA utilises 56pc of allocated funds for 71 projects during ongoing FY 2025-26

ISLAMABAD: The National Highway Authority (NHA) has utilised 56 percent of its allocated funds for 71 projects during the ongoing financial year of 2025-26.

Chief Executive NHA Capt Asadullah Khan (Retd) stated this in a meeting of the Senate Standing Committee on Communications, which met on Monday under the chairmanship of Senator Pervaiz Rashid, to review the budgetary allocations for the current financial year and budgetary proposals for the upcoming fiscal year.The committee was apprised that under the Public Sector Development Programme (PSDP) the total allocation for NHA projects was Rs 124.31 billion out of which so far Rs 69.17 billion has been spend on different projects.

The NHA official informed the committee that for Balochistan expressway projects (N-25) separate allocation of Rs 100 billion has been made, and out of this Rs 55 billion has been utilised as well. The funding for these projects would be generated through additional Petroleum Development Levy (PDL).

The committee reviewed the budgetary allocations and releases for the current financial year and examined the proposed budget for the next financial year.

The committee expressed serious concern that delays in project execution due to insufficient budget releases are leading to significant cost escalations.

Senator Jam Saifullah Khan emphasised that the Sukkur–Hyderabad Motorway should be treated as a priority project and directed that progress updates be presented in every committee meeting.

The committee expressed concern over the slow pace of road infrastructure projects across the country and urged the formulation of a mechanism to avoid the simultaneous execution of multiple projects. It was suggested that initiating and completing projects one at a time would help prevent cost escalation and ensure timely completion.

The committee further recommended consultation with the Planning Commission in devising such a mechanism. The chairman directed that clear responsibility be fixed for project delays and that escalation costs be borne by those responsible.

The committee also discussed issues concerning the deteriorating condition of motorways and the Lawari Tunnel. Serious concerns were raised regarding safety, ventilation, and quality standards, particularly in view of the strategic importance of the tunnel.

The committee also deliberated on the need for protective roofing and safety measures for roads in mountainous regions, including Chitral. It was noted that a significant number of NHA road connectivity projects are currently underway in Balochistan.

The chairman directed that detailed project specifications be provided to the committee and inspection visits for committee members be arranged.

The Sub-Committee of the Senate Standing Committee on Communications presented its unanimous report, which was appreciated by the chairman and members for its diligent work.

The committee was also briefed on the progress of the Chakdara–Chitral and Gilgit–Shandur road projects.

The committee also discussed issues related to the dilapidated condition of roads raised during Senate proceedings and reviewed the implementation status of the approved Escalation Price Adjustment Formula.

Furthermore, the committee was briefed on the implementation of the Prime Minister-approved Escalation Price Adjustment Formula for ongoing projects.

The committee noted that delays in the implementation of the formula could further increase contractors’ claims and termed such delays as contrary to the Prime Minister’s directives.

The Chairman directed the Chairman NHA to address the matter promptly and submit quarterly progress reports to the committee.

Copyright Business Recorder, 2026