The National Assembly Standing Committee on Economic Affairs debated the inclusion of the Lyari Elevated Freight Corridor in the Public Sector Development Programme.
Lawmakers raised serious concerns over soaring project costs and funding options, even as the project was described as “oxygen for the economy.”
The meeting, chaired by Mirza Ikhtiar Baig, was told that the project’s cost has surged to Rs. 274 billion, up sharply from earlier estimates of around Rs. 100 billion, sparking questions over feasibility and financial viability.
Officials from the Karachi Port Trust informed the committee that while KPT has a cargo handling capacity of 125 million tonnes, only about 56 million tonnes are currently being handled due to poor connectivity.
They said the port lacks a direct link to the national highway and motorway network, which is causing congestion and inefficiencies in Karachi.
Committee member Javed Hanif Khan recalled that earlier cost estimates stood at around $1 billion and questioned why such an expensive option was being pursued. He said the project should either be included in the PSDP or financed through external sources such as Korean funding, and sought details of the feasibility study.
Officials told the committee that the project could not be executed under a public-private partnership model, prompting the chairman to ask departments to clearly identify a workable mechanism for completion.
National Highway Authority officials said the project involves upgrading 56 kilometres of highways, while the Lyari Elevated Corridor itself would span 16 kilometres.
They said the initial construction estimate was Rs. 88 billion, but the feasibility study revised the cost to Rs. 274 billion, mainly due to the inclusion of taxes. The study also declared the project economically unviable.
Javed Hanif Khan questioned repeated upward revisions in cost estimates and warned against inflating figures to justify higher returns. He maintained that direct access to Karachi Port Trust would generate national economic benefits and argued that a Rs. 100 billion project should be manageable under the PSDP.
Chairman Mirza Ikhtiar Baig highlighted Karachi’s traffic problems, noting that heavy vehicles are currently allowed only at night, resulting in thousands of trucks entering the city simultaneously.
Calling the corridor a national priority, he said lawmakers face daily public queries without having clear answers.
The committee directed the NHA and KPT to jointly explore a viable funding solution and stressed that the project must be completed at the lowest possible cost.
Describing the corridor as “oxygen for the economy,” the chairman said the project was unavoidable and required collective effort.
It was also decided that the next meeting of the standing committee would be held in Karachi. Committee member Shehla Raza expressed frustration that even after four meetings, discussions had not moved beyond the Lyari Corridor issue.