Sialkot-Kharian motorway project approved with revised cost of Rs 81.97 billion

ISLAMABAD: The Special Investment Facilitation Council’s (SIFC) Executive Committee (EC) has determined to build the M-12 (Sialkot-Kharian) and M-13 (Kharian-Rawalpindi) motorways as six-lane highways from the start.

According to the spokesperson, the necessary approvals are being obtained from the appropriate forums.

The chairman of the National Highway Authority (NHA) told the EC of SIFC at a recent meeting that the hydrologic model Study for the bridge at the Chenab River forced the road to be relocated from the initial RFP, which resulted in delays in the acquisition of land for the realigned section.

Significant changes have been made to the Sialkot-Kharian Motorway project as a result of many factors, ranging from changes in the scope of the project by the Ministry of Defence to the unprecedented changes in inflation and increases in KIBOR rates.

The cost of construction on the project has gone from an initial estimate of Rs 22.5 billion in 2021 to Rs 61.523 billion for a four-lane facility and Rs 71 billion for a six-lane facility in December of 2024.

The SIFC recommended constructing the motorway as a six–lane facility from the start, after, in November of 2023, a request from the Ministry of Defence for a renegotiation of the PPP Agreement.

A traffic study affirmed that additional lanes are required and that initial construction of six lanes would be Rs 9.5 billion more; however would also achieve savings of about Rs 11 billion versus adding more lanes at a future date.

The SIFC-EC endorsed the six-lane facility proposal with a base construction cost of Rs 77 billion, and the overall project cost is given as Rs 81.97 billion.

The Ministry of Communications and NHA will submit a position paper to the Government for approval, and NHA will adjust the financing structure with an amendment in the PPP Agreement.

Other projects (the Kharian-Rawalpindi Motorway; Sukkur-Hyderabad Motorway) are also moving forward, and the NHA is working on a holistic Master Plan for motorways and highways to ensure end-to-end interconnectivity.“

The NHA has been instructed to expedite the construction of the N–25 Karachi-Quetta section to be completed within three years and to establish service areas and rest areas for regular road users.

The Sukkur-Hyderabad Motorway project will be imminent for bidding shortly, with contract awards targeted for October 2025.