PPP questions legality of using federal funds for Rs465 billion motorway project in Punjab

The federal government’s decision to fund the Rs465 billion Lahore-Bahawalnagar motorway project has come under scrutiny, with the Pakistan Peoples Party (PPP) raising concerns about the legality and financial impact of using federal funds for a provincial project, The Express Tribune reported. 

Senior PPP leader Syed Naveed Qamar submitted a calling attention notice in the National Assembly, arguing that the motorway project violates the National Fiscal Pact, which restricts federal funding for provincial schemes. In response to Qamar’s concerns, Speaker of the National Assembly Sardar Ayaz Sadiq referred the issue to the National Assembly Standing Committee on Planning for further discussion. 

This is the second consecutive day that the ruling party faced opposition pressure, with the PPP also challenging the government’s “unconstitutional” move to enact a presidential ordinance without the assent of the President of Pakistan.

The controversial project is intended to connect Lahore to Bahawalnagar, but official documents reveal that the project’s cost has increased by 76% compared to the original estimate approved two years ago. This cost surge, along with concerns over the project’s impact on other key infrastructure initiatives, has raised alarms within the opposition and the planning community. 

The project’s implementation could potentially jeopardise the completion and viability of the China-Pakistan Economic Corridor’s (CPEC) Mainline-I (ML-I) project, a key national infrastructure initiative.

The PPP has voiced concerns over the potential diversion of funds from other priority infrastructure projects, notably the Sukkur-Hyderabad Motorway, which remains incomplete due to the absence of a crucial link. 

The Planning Ministry has also warned that the Lahore-Bahawalnagar project could undermine the funding of other key road developments. The National Highway Authority (NHA) has raised concerns over the project’s revised cost estimate, which now stands at Rs465.1 billion. 

Additionally, the Central Development Working Party has recommended that only the 18.5-kilometre section of the Lahore Ring Road be considered for approval by the Executive Committee of the National Economic Council (ECNEC), while the remaining 276.5 kilometres require comprehensive technical feasibility and economic viability studies.

The Ministry of Planning also stressed that the project’s financing should be restructured, with alternative funding options explored due to constraints under the Public Sector Development Programme (PSDP). These concerns extend to ensuring that funding for other priority projects, such as the realignment of the Karakoram Highway, Lowari Tunnel works, and the Khyber-Pakhtunkhwa Economic Corridor, is not compromised.

Despite the pushback, the CDWP has granted in-principle approval for the 18.5-kilometre section from the Lahore Ring Road, with further studies and rationalisation required for the remaining part of the project. However, this decision remains contingent on resolving issues related to financing, technical feasibility, and alignment with the PM’s directives on infrastructure priorities.