ISLAMABAD, Oct 14 (ABC): The government has allocated Rs12.75 billion under the Public Sector Development Programme (PSDP) 2026-27 for six major infrastructure projects with a combined PC-I cost of Rs1.065 trillion.
According to official documents available with Wealth Pakistan, the allocation comprises Rs9.60 billion in local funding and Rs3.15 billion in foreign assistance. The projects include major highway and motorway schemes, tunnel-related infrastructure and land acquisition for road development.
The documents show that first-quarter releases for FY2026-27 totalled Rs199.4 million, while recorded utilisation stood at Rs53.48 million. Meanwhile, cumulative expenditure on the six projects up to June 2026 amounted to Rs505.698 million.
Karakoram Highway relocation gets largest allocation
The government has earmarked the largest allocation of Rs5 billion for relocating the Karakoram Highway between Thakot and Raikot due to the construction of dams on the Indus River.
The 241-kilometre project, listed as China EXIM-funded, has a PC-I cost of Rs502.6 billion, making it the most expensive of the six schemes. Its annual allocation includes Rs4.5 billion in local funding and Rs500 million in foreign assistance.
Another major scheme is the Lahore-Sahiwal-Bahawalnagar Motorway, which has received an allocation of Rs2 billion against a PC-I cost of Rs435.72 billion.
The project covers 295 kilometres of motorway construction, along with an 18-kilometre link connecting the Lahore Ring Road at Raja Jang Interchange to Kasur Road. According to the documents, the project’s revised PC-I is undergoing approval.
Meanwhile, the revised Khyber Pass Economic Corridor (KPEC) project has received an allocation of Rs2.5 billion for FY2026-27.
The World Bank-funded scheme carries a PC-I cost of Rs77.91 billion, while cumulative expenditure up to June 2026 stood at Rs214.38 million.
Together, the Karakoram Highway relocation, Lahore-Sahiwal-Bahawalnagar Motorway and KPEC account for Rs9.5 billion. This represents approximately 74.5% of the total annual allocation for the six projects.
Rs3.25bn allocated for three other road projects
The government has allocated the remaining Rs3.25 billion to three schemes involving the Lowari Tunnel, Chakdara-Chitral Road and land acquisition for the Karakoram Highway relocation.
Of this amount, Rs2 billion has been earmarked for electrical and mechanical works and bridges associated with the Lowari Tunnel.
The project has a PC-I cost of Rs33.25 billion and is currently under procurement. It is also the only scheme among the six for which the documents record first-quarter releases and utilisation.
According to the figures, the government released Rs199.4 million during the first quarter of FY2026-27, while expenditure utilisation amounted to Rs53.48 million.
The Chakdara-Chitral Road Project (N-45), Section III, covering the 48-kilometre Kalkatak-Chitral section, has received an allocation of Rs500 million against a PC-I cost of Rs10.95 billion.
The project, identified as EDCF/Korea-funded, will receive Rs50 million in local funding and Rs450 million in foreign assistance. Its current status is also listed as under procurement.
Meanwhile, the government has allocated Rs750 million for land acquisition associated with the relocation of the Karakoram Highway between Thakot and Raikot.
The land-acquisition scheme has a PC-I cost of Rs4.13 billion and is listed as under process.
First-quarter utilisation stands at Rs53.48m
The documents show that three of the six projects are at the procurement stage, while the Lahore-Sahiwal-Bahawalnagar Motorway awaits approval of its revised PC-I.
The documents also record combined liabilities of Rs155.683 million, alongside first-quarter utilisation of Rs53.48 million against releases of Rs199.4 million.
These figures provide a snapshot of the funding and implementation position of the six infrastructure projects under PSDP 2026-27.
