ISLAMABAD: Pakistan risks losing a $360 million loan from the Asian Development Bank as the April 5 deadline approaches for a key highway project, placing the final decision in the hands of Prime Minister Shehbaz Sharif.
The funding is tied to the Central Asian Regional Economic Cooperation Tranche Three highway project, a major regional connectivity initiative aimed at upgrading critical sections of the N fifty five corridor and strengthening trade links across Central Asia.
Officials said all procedural flaws and objections in the award process have been addressed after earlier concerns raised by parliamentary committees led to a temporary halt. The National Highway Authority is now awaiting formal approval to proceed with contract awarding.
Clearances have already been secured from key institutions including the Executive Committee of the National Economic Council and the Islamabad High Court, while the Supreme Court has upheld the procurement process and validated the selected joint venture as the lowest bidder.
The ADB has issued a final warning that the deadline is non extendable and failure to act could result in withdrawal of financing. Officials fear that any further delay may trigger compliance issues and impact future funding prospects for large scale infrastructure projects.
The urgency is compounded by rising economic pressure linked to the Iran Israel US conflict 2026, which has increased Pakistan’s import bill. Experts say securing the loan is critical to sustain infrastructure development and maintain economic stability.
