Islamabad: The Executive Committee of the National Economic Council (ECNEC) has approved 13 major development projects worth Rs1,275.7 billion, with a significant focus on expanding Punjab’s motorway and highway network.
A key project among the approvals is the Lahore-Sahiwal-Bahawalnagar Motorway, which has seen its cost surge by 65% to Rs436 billion, up from its initial Rs264 billion estimate. Despite restrictions on federally funded provincial projects under the National Fiscal Pact, the federal government is moving forward with the project, with the Punjab government expected to finance at least half of the cost. A final decision on this funding arrangement is still pending.
Land Acquisition & Project Scope According to ECNEC, 90% of the land acquisition for Package-I of the motorway is complete. The National Highway Authority (NHA) will start construction from Lahore Ring Road to the Raiwind-Kasur Road Interchange using Public Sector Development Program (PSDP) funds. However, NHA will re-evaluate the project alignment to ensure better integration with the existing motorway network.
In another key infrastructure decision, ECNEC approved the Rawalpindi Ring Road project, which has also seen a 40% cost increase to Rs33 billion. Originally approved in 2021, the project has been expanded in scope, leading to higher costs due to additional culverts, underpasses, and bridges.
The Multan-Vehari Road rehabilitation project was also approved, with an allocated budget of Rs12.9 billion, aiming to improve regional connectivity and road safety.
Other Key Approvals Beyond highway expansions, ECNEC sanctioned several other infrastructure projects, including:
The Pakistan Optical Remote Sensing Satellite (PRSS-O2) project, revised to Rs19.5 billion, with 85% funding from a concessional Chinese loan.
The Sindh Flood Emergency Rehabilitation Project (SFERP) Phase-I, now estimated at Rs88.4 billion, up by Rs22.4 billion. The World Bank will finance this with a $288 million loan.
The procurement of 820 railway bogie wagons and 230 passenger coaches, now costing Rs71 billion, up 129% from its original estimate.
The Green Line Bus Rapid Transit (BRT) project in Karachi, with administrative clearance granted for liability settlements before its transfer to the Sindh government.
An allocation of Rs28 billion for Public-Private Partnerships, with the Sindh government urged to complete activities by June next year to prevent financial penalties.
Government’s Commitment to Development The meeting, chaired by Deputy Prime Minister and Foreign Minister Senator Ishaq Dar, was attended by key provincial ministers, federal secretaries, and senior officials. Senator Dar reaffirmed the government’s commitment to sustainable development, improved inter-provincial connectivity, and long-term economic transformation through strategic infrastructure investments.
With the expansion of Punjab’s motorway network and key national infrastructure projects, ECNEC’s approvals mark a significant step toward enhancing connectivity, supporting trade, and boosting economic growth across Pakistan.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
