ISLAMABAD: National Highways Authority (NHA) has admitted that because of shortage of funds, 4-lane Lyari Elevated Freight Corridor is not a financially feasible option and that is why it is exploring other alternative routes including the upgradation of Karachi Northern Bypass.
This was revealed in the meeting of the National Assembly Standing Committee on Economic Affairs Division held under the acting chairmanship of MNA Sher Ali Arbab.
The NHA official said that Lyari Elevated Freight Corridor project’s total estimated cost is Rs68.9 billion. He said with as high Viability Gap Fund (VGF) upfront grant and operational loan as 35 percent is not feasible and bankable option, therefore, it does not qualify for a potential candidate for public-private partnership investment mode. He said because of commercial non-viability, the NHA is no more working on this project.
NA body told: Karachi Northern Bypass being upgraded to 8-lane motorway
Among the alternatives, he added, is the potential development of the Karachi Northern Bypass (KNB). The options under consideration involve a significant upgrade of the existing at-grade, 2-lane KNB highway to a modern, high-capacity 4 to 6 lane motorway standard.
MNA Muhammad Jawed Hanif Khan said this Lyari Elevated Freight Corridor project is of national importance and vital for the economy. He said this project could substantially reduce the transportation cost of the exporters and importers and reduce the burden of heavy traffic in Karachi. He said NHA should work on projects on the basis of economic rather than political consideration.
The committee, unanimously, recommended that the Lyari Elevated Freight Corridor (LEFC) be added to the PSDP projects. The committee was informed that a comprehensive plan was being undertaken by the Ministry of Communications and the NHA to optimise freight movement and enhance logistical efficiency in the Karachi region.
The committee showed its displeasure on the absence of power sector representatives and senior officials from the Ministry of Planning, Islamabad, to brief the committee on their relevant agenda items.
The committee discussed the matter concerning the award of a significant infrastructure contract, valued at approximately Rs172 billion, to M/s Ningxia Communications Construction Co.
In light of the concerns raised and to ensure absolute transparency and accountability, the prime minister has been pleased to intervene in the matter for immediate inquiry.
The committee has further recommended that all work associated with the aforementioned construction firm on this project should be suspended until the inquiry is conclusively completed with all facts and figures comes in front.
Regarding the briefing on NGO’s policy, the ministry representatives said the initial draft regarding NGO’s policy has been forwarded for consideration to the federal cabinet. Upon its approval by the cabinet, the finalised policy will be presented to the Parliament as a legislative proposal to undergo the requisite constitutional process and be enacted into law.
Copyright Business Recorder, 2025