In a sweeping approval spree, Pakistan’s Executive Committee of the National Economic Council (ECNEC) has cleared 27 major development initiatives worth more than Rs1.5 trillion, focusing heavily on long-overdue infrastructure improvements in Sindh and Balochistan.
The meeting, chaired by Deputy Prime Minister Ishaq Dar, saw quick approvals of projects that had either stalled or faced delays in past years due to funding bottlenecks or flawed PPP models.
Sukkur-Hyderabad Motorway Finally Moves Ahead — At Double the Original Price
The long-pending Sukkur-Hyderabad Motorway (M-6) has been reapproved with a revised cost of Rs363 billion—an eye-watering 121% jump from its original estimate of Rs165 billion in 2020.
This marks the fourth attempt to kickstart the project, with previous efforts under the public-private partnership model failing to materialize. This time, a Chinese company is reportedly ready to take on the full construction, according to Planning Minister Ahsan Iqbal.
The project is politically significant for the Pakistan Peoples Party (PPP), which has lobbied hard for its inclusion in the Public Sector Development Programme (PSDP), even linking its budgetary support to the project’s rollout.
Major Overhaul of Balochistan Roads as N-25 Expansion Gets Rs415 Billion Nod
The largest slice of the funding pie is headed to Balochistan, with three major segments of the Karachi-Quetta-Chaman N-25 highway getting approval for expansion and dualisation.
- Karachi to Quetta (278 km) – Rs183.4 billion over three years (Rs33 billion earmarked for FY26)
- Khuzdar to Kuchlak (332 km) – Rs99 billion
- Khuzdar-Chaman & Karoro Wadh sections – Rs133 billion
The multi-billion-rupee roadworks aim to bring safer and faster connectivity to one of Pakistan’s most underdeveloped and logistically critical regions.
Green Pakistan Programme Scales Up: Rs122 Billion for Forests, Biodiversity
In a significant step toward climate resilience, the government has approved an expanded version of the Green Pakistan Programme with a budget of Rs122.2 billion. This phase will emphasize forest restoration, biodiversity preservation, and alternative forest economies.
Punjab and Khyber Pakhtunkhwa will receive Rs32 billion and Rs28 billion respectively to support localized environmental initiatives under this umbrella.
Balochistan Gets Flood Protection Project Amid Growing Climate Risks
Balochistan, often hit hardest by floods, will now benefit from a Rs17 billion flood management project focused on the Kachhi Plains. The move comes as climate-linked disasters become increasingly common, highlighting the region’s vulnerability and the lack of protective infrastructure.
Energy, Tourism, and Education: A Mixed Development Bag
Other ECNEC approvals reflect a diverse spread of national priorities:
- Naltar Hydropower Project (16MW) – Rs10.6 billion
- Punjab’s Tourism for Economic Growth Programme – Rs12.2 billion
- Higher Education Development Initiative – Rs21.2 billion
- PM’s Pakistan Fund for Education – Rs14 billion
- Punjab Laptop Scheme (CM Maryam Nawaz’s Initiative) – Rs27 billion
Controversial Projects Could Test IMF Patience
Among the more contentious approvals is the dualisation of the Sargodha–Mianwali–Khushab road at Rs12 billion, with 25% funded by the federal government. This violates an explicit condition set by the IMF to avoid federal co-financing of provincial projects.
Other Punjab-specific urban infrastructure projects include:
- Lahore Sewerage Upgrade (Larechs Colony to Gulshan-e-Ravi) – Rs49.3 billion
- Niazi–Babu Sabu Controlled Access Corridor – Rs12 billion, fully Punjab-funded
Coastal and Highway Projects in Sindh Get Federal Backing
Sindh’s key transportation arteries are also set for a facelift:
- Sindh Coastal Highway – Revised cost of Rs37.7 billion (Rs27 billion federal, Rs10.8 billion provincial share)
- Mehran Highway (Nawabshah to Ranipur) – Now pegged at Rs41 billion
N-5 Highway Reconstruction Gets $500M AIIB Backing
Lastly, the N-5 National Highway—part of Pakistan’s post-flood Resilient Recovery and Reconstruction Framework—will undergo reconstruction at a cost of Rs165 billion. The Asian Infrastructure Investment Bank (AIIB) is financing 85% of the project through a $500 million loan.
Takeaway: Infrastructure Push or Fiscal Risk?
While the approval of these projects signals a much-needed commitment to development—especially in neglected regions—the massive price tags and federal-provincial cost-sharing may raise eyebrows at the IMF and among economic observers. Whether this infrastructure blitz translates into real economic impact or triggers new fiscal headaches remains to be seen.
