In the run-up to the federal budget for 2025-26, the government has proposed allocating more than Rs. 300 billion for major road and highway infrastructure projects under the Public Sector Development Program (PSDP).
A substantial share of the proposed funding is dedicated to the dualization and rehabilitation of key national highways. The largest allocation, Rs. 40 billion has been earmarked for the Karachi-Quetta-Chaman Road (N-25), specifically for the Karachi-Kararo and Wadh-Khuzdar sections. An additional Rs. 40 billion is set aside for the Khuzdar-Kuchlak stretch of the same highway.
The Hyderabad-Sukkur Motorway, a 306-kilometer six-lane project, is also a major beneficiary, with a proposed allocation of Rs. 30 billion, making it one of the year’s largest single infrastructure investments.
Other significant road projects include Rs. 10 billion for the Sialkot-Kharian Motorway, Rs. 7.5 billion for the Lahore Ring Road to Kasur Interchange, Rs. 7 billion for the Hoshab-Awaran-Khuzdar section of the M-8, and Rs. 4.5 billion for the dualization of the Kuchlak-Zhob road (N-50).
The government has also prioritized interchanges and connectivity improvements, proposing Rs. 2 billion for land acquisition for the Karachi–Lahore Motorway and Rs. 1.34 billion for land acquisition related to the Kuchlak–Zhob dualization. Numerous smaller road and drainage schemes in Sargodha, Gujrat, Bahawalpur, Mianwali, Faisalabad, Kasur, and Chakwal districts are set to receive allocations ranging from Rs. 100 million to Rs. 800 million each.
Additional proposed allocations include Rs. 2.5 billion for SITE industrial roads in Karachi, Rs. 4 billion for the Sindh Coastal Highway, Rs. 16 billion for NA-level development road schemes, and over Rs. 14 billion for road infrastructure in Punjab through Pak-PWD and DDWP-sponsored packages.
Many of these projects are part of broader regional integration efforts under the Central Asia Regional Economic Cooperation (CAREC) and China’s Belt and Road Initiative (BRI), reflecting the government’s focus on enhancing connectivity and supporting economic growth.
