ISLAMABAD - The Lahore-Multan Motorway (M-3) project has got lion’s share of Rs8.13 billion from a total release of Rs12.08 billion for the National Highway Authority (NHA).
NHA has got its first release of Rs12.08b against its total allocated budget of Rs185.19b for financial year 2018-19 from Public Sector Development Program (PSDP).
According to latest figures of PSDP releases shared by the Ministry of Planning Development and Reforms, the highest release of Rs.8.13bn has been made for Lahore-Multan Motorway (M-3) project, which is a part of Karachi-Lahore Motorway and a total of Rs.44.66b is allocated for said project in PSDP 2018-19.
Furthermore, the major amounts have been released against different projects include Rs.700 million for 32.2 km long Peshawar Northern Bypass, Rs.250m for Lowari Road Tunnel & Access Roads Project, Rs.400m for improvement, upgradation and widening of Jaglot to Skardu Road, Rs.500mn for dualization of Indus Highway (N-55) Sarai Gambila to Kohat Section, Rs.100m for dualization & improvement of Pindigheb to Kohat Road, Rs.500m for the construction of 118km long KKH Phase-II Havelian to Thakot as Part of China Pakistan Economic Corridor (CPEC), Rs500m for the construction of infrastructure and allied works for Metro Bus Services Peshawar Morr to New Islamabad International Airport, Rs.200m for the construction of Expressway Khanewal (E-4), Rs120m for construction of Burhan-Havelian Expressway (E-35) and Rs510m for construction of 6-Lane Highway from Kala Shah Kaku to Lahore Ring Road while several other projects have also got funds in Friday’s release.
However, around 22 ongoing schemes out of total 38 once again neglected in fresh PSDP releases besides the fact that the first quarter of the financial year 2018-19 has already been ended.
The previous government, while preparing the budget for financial year 2018-19, had allocated Rs301.6b for NHA to finance its 123 schemes including 43 ongoing and 78 new projects.
However, the incumbent government after assuming the power had decided to revise the budget 2018-19 and tabled a supplementary finance bill in the National Assembly, reducing the overall PSDP allocations whereas the allocation for NHA was also reduced to Rs185.197b, which is 61 percent of the original allocation made by the Pakistan Muslim League Nawaz government.
In revised PSDP 2018-19, the government has not only excluded a number of projects of NHA but also decreased the amount previously allocated in the budget for most of the projects. A total of 83 project of NHA were excluded in revised PSDP, which includes 7 ongoing and 76 new schemes. The incumbent government has again included 4 out of total 7 ongoing schemes as new schemes in revised PSDP besides including 2 entirely new projects in new schemes.
Though the release of Rs.12.08b would provide a breathing space to cash strapped NHA but the said release is not sufficient enough because it is quite low to the actual share of the authority in PSDP allocations. The delay in releasing funds for NHA would not only hurt the pace of projects’ execution but it would also add an escalation cost to these projects at the end.
As per a set mechanism of the Planning Commission of Pakistan for the release of funds, 20 per cent of funds are released in first quarter (July- September), 20 per cent in second quarter (October-December), 25% third quarter (January-March) and 35 per cent in fourth quarter (April-June) in each financial year.
However, the NHA could not get a single penny in last four months and the present release is the first in current financial year, which shows that the road infrastructure is not the top priority of incumbent government.