CDWP conditionally recommends Rs465 billion Lahore-Bahawalnagar motorway project for Ecnec approval, despite regulatory concerns

The Central Development Working Party (CDWP) has conditionally recommended the Rs465 billion Lahore-Bahawalnagar motorway project for final approval of the Executive Committee of the National Economic Council (Ecnec), despite concerns over its violation of the National Fiscal Pact and directives from the Prime Minister’s Office. 

According to a news report by The Express Tribune, the project’s cost has surged by Rs201 billion, a 76% increase from its original estimate two years ago, raising concerns that it could undermine the viability and progress of the Mainline-I project under the China-Pakistan Economic Corridor (CPEC). 

Tribune cited sources as saying that the Lahore-Bahawalnagar motorway project was cleared despite breaching the National Fiscal Pact, which prohibits the financing of provincial projects. The project also goes against Prime Minister Shehbaz Sharif’s instructions, which mandated that at least 50% of the funding should come from the Punjab government.

The approval was granted without a solid financing plan in place, and without finalising the project’s design, despite suggestions from the PM Office and Ecnec for design revisions. While it is a provincial scheme, documents indicate that the project is intended to be financed through the Public Sector Development Programme (PSDP), with a completion timeline of five years.

The Planning Commission’s technical section warned that proceeding with this project could undermine the viability and progress of the Mainline-I (ML-I) project, a critical part of the China-Pakistan Economic Corridor (CPEC). The commission emphasised that this concern must be carefully considered by the Central Development Working Party (CDWP).

Further analysis showed that the revised project cost of Rs465.1 billion was based on the Composite Schedule of Rates (CSR) 2024, while the National Highway Authority (NHA) had already formulated a cheaper CSR for 2025, suggesting that the project cost should be reassessed.

The project involves two sections: the first is a 220 km six-lane motorway from Lahore Ring Road to National Highway N-5 near Kassuwal, and the second is a 75 km four-lane motorway from Depalpur to the Michanabad–Bahawalnagar road.

Sources stated that during the CDWP meeting, the planning minister raised several concerns. However, the communications ministry, as the sponsoring ministry, requested the project’s approval, assuring that the raised issues would be addressed in due time.