The federal government has conditionally approved the construction of three segments of the Balochistan Expressway (N-25), aimed at improving travel safety and regional connectivity. The project, valued at Rs. 415 billion, will be funded through an additional Rs. 8 per liter levy on petrol and diesel, introduced in April.
Essentially, the new expressway will be funded from citizens’ petrol spending.
The project spans 692 kilometers in total and will be executed in three phases by the National Highway Authority (NHA).
The first section, Karachi-Quetta-Chaman (278 km), is expected to cost Rs. 183.4 billion, with Rs. 33 billion allocated in the current fiscal year. The second segment, Khuzdar-Kuchlak (332 km), has a projected cost of Rs. 99 billion. Around 52% of the construction is already complete, and Rs. 34 billion has been set aside for this year. The final segment, covering Karoro Wadh and Khuzdar-Chaman (104 km), will cost Rs. 133 billion, with Rs. 33 billion allocated in FY 2025-26.
The entire project is being funded by a petroleum levy that adds Rs. 8 per liter on top of existing fuel taxes. Combined with a Rs. 75 petroleum levy, a Rs 2.5 climate levy, and 10% customs duty, this has made petrol one of the most heavily taxed commodities in Pakistan. It currently sells for Rs. 272 per liter.
Prime Minister Shehbaz Sharif defended the policy, calling it a necessary step to fund overdue infrastructure upgrades in Balochistan.
The CDWP flagged issues related to road alignment, cost revisions, and land acquisition. These must be resolved before ECNEC can formally authorize the project. Officials also warned that the current year’s limited allocations could delay completion unless funding increases to Rs. 75 billion per year.
Once completed, the expressway will provide a dual carriageway from Karachi to Quetta, a route often cited for its poor safety record. The government believes the project will enhance regional connectivity, improve trade corridors, and reduce travel time between southern and western Pakistan.
Out of the federal Public Sector Development Programme’s Rs. 1 trillion allocation this year, Rs. 210 billion has been reserved for Balochistan. The expressway project is expected to be one of the province’s most significant infrastructure investments in recent years.
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