ISLAMABAD: The federal government has conditionally recommended the Lahore Bahawalnagar motorway project worth Rs465 billion for approval, triggering controversy over alleged violations of fiscal rules, prime ministerial directives and planning procedures. Official documents indicate that the project was cleared despite the absence of secured funding, a finalised design and compliance with the National Fiscal Pact, which restricts federal financing of provincial nature schemes.
The revised cost of the motorway is 76 percent higher than its original estimate of around Rs264 billion approved two years ago. Planning authorities have warned that the project could undermine the viability and upgradation of the Mainline One railway project under the China Pakistan Economic Corridor, a flagship national priority. Technical observations submitted to the Central Development Working Party highlighted this risk and urged careful reconsideration.
The CDWP has recommended the project for final approval by the Executive Committee of the National Economic Council, stating that some components were cleared after completing codal formalities while others were approved in principle. However, sources revealed that the decision contradicts explicit instructions from Prime Minister Shehbaz Sharif requiring at least 50 percent funding from the Punjab government.
Despite being a provincial scheme, documents show the project is proposed to be financed through the federal Public Sector Development Programme and implemented over five years. Planning officials also questioned the cost calculations, noting that the revised PC One is based on outdated Composite Schedule of Rates 2024, even though a cheaper 2025 schedule is available.
The motorway project includes a six lane 220 kilometre section from Lahore Ring Road to near Kassuwal and a four lane 75 kilometre stretch linking Depalpur to Bahawalnagar. Concerns were raised that launching the project without redesigning the alignment ignores previous ECNEC and Prime Minister Office directives.
Funding constraints dominated CDWP discussions as officials warned that adding a Rs465 billion project could strain PSDP resources and delay strategic initiatives such as Diamer Bhasha Dam, Karakoram Highway expansion and other major motorways. With NHA already facing a throw forward of Rs2.5 trillion, planners cautioned that proceeding could cause widespread delays and cost overruns across ongoing national infrastructure projects.
