ISLAMABAD: The government has decided to prioritise the launch of the M6 Motorway in the development programme for the upcoming fiscal year, the National Assembly Standing Committee on Economic Affairs was informed on Tuesday.
During the meeting chaired by MNA Atif Khan, officials from the Ministry of Economic Affairs said foreign financing of Rs500 billion had been proposed for the project, with an estimated rupee cover requirement of Rs400 billion. Negotiations are ongoing with the Islamic Development Bank (IsDB), Saudi Fund for Development, OPEC Fund, and the Asian Development Bank (ADB) for financial support.
Secretary Economic Affairs Division Dr Kazim Niaz confirmed that the M6 is currently at the top of the government’s development priorities. The IsDB is expected to provide $500 million for two sections of the motorway, while discussions with the Saudi Fund and other multilateral institutions are underway to finance additional sections.
Committee member Mirza Ikhtiar Baig stressed the importance of connecting the motorway to Karachi’s port infrastructure to ensure its full economic impact for Sindh and the broader region.
The committee was also briefed on a new Country Partnership Strategy being developed with ADB, along with updates on major transmission sector initiatives. It was noted that key electricity transmission projects are expected to be completed in the next fiscal year to support grid reliability and capacity.
Additionally, $460 million in financing is available for the Khyber Pakhtunkhwa Economic Corridor. However, the Economic Affairs Division urged the provincial government to swiftly resolve pending issues to access World Bank funding.
Dr Niaz also shared a broader outlook on Pakistan’s external financing landscape. He noted that in the past three years, there has been a shift from short-term to long-term debt, and the country’s improving economic indicators have made it easier to negotiate loan terms. The debt-to-GDP ratio has declined to 67 percent, he added.
Meanwhile, a planned briefing on development projects was deferred due to the absence of the planning minister and secretary. Special Secretary Power Division Arshad Majeed informed the committee that 77 percent of the division’s 82 ongoing projects are focused on power transmission. National Transmission and Despatch Company (NTDC) officials said expectations of rising power demand have not materialised, partly due to increased solar adoption over the past five years.
