Pakistan may lose a $360 million loan from the Asian Development Bank (ADB) allocated for the Carec Tranche III international highway project if a final decision is not taken before the April 5 disbursement deadline.
All procedural deficiencies and concerns raised earlier over the award process have now been addressed, and the matter is currently awaiting final approval of Prime Minister Shehbaz Sharif.
The authority is waiting for the PM’s order, which is expected before Sunday.
Last month, ADB granted a final one-month extension, clearly stating that April 5 would be the last and non-negotiable deadline. The lender also warned that failure to award the contract within the extended bid validity period could lead to a potential non-compliance case and impact financing.
The project is part of the Central Asian Regional Economic Cooperation corridor and includes four major road segments connecting Rajanpur, Jampur, D.G. Khan, Tibbi Qaisrani, and DI Khan, with a total estimated project value of Rs. 172 billion.
The latest delay comes as Pakistan faces rising economic pressure from the Gulf war, which has already increased the annual oil import bill by $1.5 billion.
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