INP-WealthPk

NHA Receives Rs. 19.6 Billion for Road Projects

March 04, 2022

By Jawad Ahmed ISLAMABAD, Mar 04 (INP-WealthPK): The Government of Pakistan has released Rs19.629 billion ($118.56 million) in foreign financial loans to National Highway Authority (NHA) during the first seven months of FY21-22. According to a report of the Economic Affairs Division (EAD), the government acquired loans worth $118.56 million from China and Asian Development Bank (ADB) for five different ongoing projects of the NHA. China granted loans worth Rs16.460 billion ($99.64 million) from July 2021 to January 2022 for construction and rehabilitation of two major road schemes under China-Pakistan Economic Corridor (CPEC). The Chinese government provided Rs15.489 billion ($93.70 million) for the Peshawar-Karachi Motorway (Multan-Sukkur section) and Rs971.21 million ($5.94 million) for Havelian-Thakot KKH-Phase-II during the period under review. According to the report, the ADB has also issued a loan for three projects of the NHA totaling Rs3.169 billion ($18.92 million). The project-wise disbursement of loans shows that the NHA received loan provided by the ADB worth Rs1.743 billion ($10.57 million) for rehabilitation of national highways damaged by unprecedented rains and flash floods in 2010. The ADB has also granted loan of Rs895.65 million ($5.37 million) for the construction of additional carriageway on Shikarpur-Rajanpur section of N55 CAREC Corridor. Furthermore, for Gojra-Shorkot-Khanewal Motorway scheme, the ADB has provided Rs530.14 million ($2.98 million) from July 2021 to January 2022. Pakistan's strategically advantageous location places it in a strong position to get benefit through trade linkages and economic corridors. It connects Afghanistan and landlocked countries in Central Asia to Arabian Sea, as well as to China's Xinjiang. Pakistan is a member of CAREC (Central Asia Regional Economic Cooperation) Program, an 11-country alliance dedicated to regional cooperation for economic growth and long-term development. The ADB, which also acts as the CAREC Program's secretariat, is the largest funding partner for CAREC schemes. According to a report, from 2001 to June 2021, a total of $40 billion was invested in 213 CAREC-related schemes, with ADB financing more than $14.97 billion. Under the CAREC plans, transport-related projects have received more than 75% of overall investment. On the other hand, since the Belt and Road Initiative (BRI) was proposed, China has become one of the largest investors in transport and road sector development and rehabilitation schemes in Pakistan. The Chinese government is partnering with the Ministry of Communications and the NHA on the rehabilitation and construction of new roads and corridors to boost trade activity in the region. The completion of these investment projects will boost the capacity of major highway segments running through the country's most populated economic areas, and provide an easier gateway for regional trade relationships. These links will connect Central Asian nations and accelerate trade activity not just between the two countries, but also throughout the region. In the long-run, these investment projects will contribute significantly to Pakistan becoming a regional commercial giant.