Petroleum Development Levy: NHA to get Rs100bn for 3 Balochistan highway projects

ISLAMABAD: The National Highways Authority (NHA) will get funding of Rs 100 billion from petroleum development levy for three highway projects for Balochistan against the demand of Rs 160 billion in the ongoing financial year.

According to NHA document, the authority demanded Rs 160.2 billion in Public Sector Development Programme (PSDP), but gets allocation of Rs 100 billion. For dualisation of Khuzdar-Kuchlak Section (N-25) length 330.52 km, Rs 34 billion has been allocated against the demand of Rs 50.8 billion. For dualisation and rehabilitation Karachi-Quetta-Chaman Road (N-25) from Karachi-Kararo (233 km) and Wadh–Khuzdar (41 km) having total length of 273 km, Rs 33 billion has been allocated against the demand of Rs 52.5 billion. For dualisation of Kararo–Wadh Section (83 km) Kuchlak–Chaman Section (104 km) of National Highway (N-25) length 187 km, Rs 33 billion has been allocated against the demand of Rs 56.9 billion.

The NHA right now is working on Rs 2,200 billion worth of roads and highways projects. In the PSDP for FY26, the NHA requested funds for 161 schemes but the federal government approved funds of Rs 227 billion for only 105 projects. Because of shortage of funds, the NHA through toll tax and other sources earned Rs 64.8 billion in FY25 compared to Rs 32 billion in FY24.

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This amount would be used for maintenance and rehabilitation of roads and highways falls in the domain of NHA.

It may be mentioned here, Prime Minister Shehbaz Sharif in April instead of passing on the relief of reduced oil prices in international market to consumers, directed to use saved money for reconstruction of the N-25 Highway and completion of Phase-II of the Kachhi Canal project in Balochistan. Transformation of the N-25, known infamously as the “deadly road”, into a Motorway-standard highway.

The N-25, connecting Karachi to Chaman via Quetta, Kalat, and Khuzdar, has claimed more than 2,000 lives in recent years due to its poor condition and single-lane structure.

PM Shehbaz announced that the Rs 300 billion reconstruction project would now move forward under the federal government’s supervision, with a third-party validation to ensure high standards of construction.

The construction of highway was first approved in the fiscal year 2022-23, but progress stalled due to funding gaps in the past.

Copyright Business Recorder, 2025