ISLAMABAD:
The government on Friday conditionally cleared the construction of three different sections of the ‘killer road’, the Balochistan Expressway or N-25, at an estimated cost of Rs415 billion, which is being funded through Rs8 per liter levy on petrol and high speed diesel.
The Central Development Working Party (CDWP) cleared, in principle, construction of the three sections having a total length of 692 kilometers with an estimated cost of Rs415 billion for three different sections, according to the Ministry of Planning officials.
Once completed in at least three years, there will be a dual carriageway from Quetta to Karachi, which will also open new avenues of economic development and connectivity. The Deputy Chairman of the Planning Commission and Planning Minister Ahsan Iqbal chaired the CDWP meeting.
The project, to be executed in three different sections, will be presented before the Executive Committee of the National Economic Council (ECNEC) for its final approval after the National Highway Authority addresses queries raised in the CDWP meeting on Friday.
The CDWP has the mandate to approve up to Rs7.5 billion projects and refer the higher cost schemes to ECNEC, which is chaired by the Deputy Prime Minister Ishaq Dar.
The CDWP recommended dualisation of Karachi-Quetta-Chaman road having 278 kilometer length for the approval of ECNEC. This route will be constructed with a cost of Rs183.4 billion in three years and Rs33 billion have been set aside in the budget for the current fiscal year.
However, given the low allocations in the first year, it will be challenging to complete this major route in three years unless the allocation is increased to Rs75 billion annually from the next fiscal year.
The CDWP also in principle cleared the Rs99 billion worth dualization of Khuzdar-Kuchlak section of N-25 having 332 kilometers length. For the current fiscal year, the government has allocated Rs34 billion for its construction.
The cost of the Khuzdar-Kuchlak section is less compared to the other two roads due to the award of contracts in the year 2021. About 52% work on this Khuzdar-Kuchlak road is already completed and the remaining work is expected to be finished in two years.
The CDWP also sanctioned the dualization of Karoro Wadh section & Khuzdar Chaman section at a cost of Rs133 billion to build 104 kilometer road. For this fiscal year, Rs33 billion have been earmarked for this section. This project will need Rs50 billion per annum allocation for the next two fiscal years to complete the scheme on time.
Prime Minister Shehbaz Sharif in April this year imposed an additional Rs8 per liter levy on every liter of petrol and diesel consumed by rich and poor alike to fund these deadly roads. There had been criticism against the Prime Minister’s decision due to the fact that people already are heavily taxed and the government should wisely use these resources instead of putting more burdens.
The government currently charges Rs75 per liter petroleum levy, Rs2.5 per liter climate levy and 10% custom duty on every liter of petrol sold in Pakistan, making it one of the heaviest taxed products. The petrol is now sold at Rs272 per liter after adding all taxes and profit margins of dealers.
But PM Shehbaz reacted to these criticisms and stated that those opposing road projects in Balochistan, were narrow-minded. “We will complete the Karachi, Kalat, Khuzdar, and Quetta highway projects to the highest standard,” he had vowed.
The premier had said that the initiative to build roads reflected the aspirations of the people of Balochistan and was aimed at enhancing connectivity and ensuring safer travel in the province.
The CDWP raised questions about the alignment of roads, revisions in the cost and the land acquisition. Once the sponsoring ministries address these questions, the projects will be tabled before the ECNEC for the final approval.
For the current fiscal year, the government has allocated Rs1 trillion for the federal Public Sector Development Programme. Out of this, Rs210 billion has been set aside for various projects of Balochistan.
