NHA Declares Rs. 68.9 Billion Road Project Financially Unfeasible

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.