The National Highways Authority (NHA) has admitted that the proposed four-lane Lyari Elevated Freight Corridor in Karachi is not financially viable due to funding shortages. Officials revealed this during a meeting of the National Assembly Standing Committee on Economic Affairs Division, chaired by MNA Sher Ali Arbab.
According to NHA officials, the project’s estimated cost stands at Rs68.9 billion. They explained that the scheme requires an upfront Viability Gap Fund grant and an operational loan amounting to nearly 35 percent of the total cost, which makes it an unattractive and non-bankable option for public-private partnership investment.
Consequently, the NHA has decided to step back from the plan. Instead, the authority is evaluating alternatives, including upgrading the existing Karachi Northern Bypass (KNB). Proposals under review suggest transforming the current two-lane bypass into a modern four- to six-lane motorway-standard route to handle freight more efficiently.
Committee member MNA Muhammad Jawed Hanif Khan emphasized that the Lyari project remains vital for the national economy, noting it could help exporters and importers by reducing transportation costs while easing Karachi’s traffic burden. He urged the NHA to prioritize projects based on economic rather than political considerations.
The committee unanimously recommended that the Lyari Elevated Freight Corridor be included in the Public Sector Development Program (PSDP). Officials added that a broader plan is underway to improve freight movement and logistics across the Karachi region.
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Why is there so much money for that projects but no money for public schools and hospitals ?
Because your local mna and mp eats up budget money for school with the help of Ac. Dc, and government employees …
Get the funding from local IPO and after that pay it from toll tax income. Govt job is to build road and hand over it to contractor.
Karachi is mini Pakistan, huge population, huge traffic and everyday traffic accidents needed wide roads .it’s unwise decision not to build such roads in karachi.
If Someone wants elevated lyari project to proceed despite being economically unviable especially PPP then Zardari needs to vomit out little portion of looted wealth since he’s ruling Sind Since
more than 2 decades & eating 50 percent of Sind Province budget annually. If you travel to interior Sind you will find ordinary people living in stone age ! Thanks