Transport & communications: Rs333bn earmarked for various projects
ISLAMABAD: An allocation of PKR 333 billion has been earmarked for the implementation of various projects in the transport and communications sector.
The funding aims to support infrastructure development, enhance regional connectivity, and strengthen Pakistan’s position as a regional trade and transit hub.
According to the Economic Survey 2025-26, the government’s initiatives, including the China-Pakistan Economic Corridor (CPEC), continue to prioritize the modernization and expansion of transport and communication networks.
The National Highway Authority (NHA) continued to play a pivotal role in strengthening the country’s transport network, and at present, the NHA network comprises 48 National Highways, Motorways, and Strategic Roads, spanning approximately 14,480 kilometers across the country.
The NHA’s development portfolio under the PSDP 2025-26 comprises 71strategically important projects with a total allocation of PKR 226.98 billion.
The portfolio is predominantly focused on ongoing schemes, with 67 projects accounting for PKR 224.83 billion, reflecting the government’s priority on the timely completion of major transport corridors and efficient utilization of existing investments.
In parallel, four newprojects with an allocation of PKR 2.15 billion have been incorporated into the PSDP to address emerging connectivity requirements.
During the July–March 2025-26 period, significant progress was made in advancing major national road infrastructure projects. Several strategically important PC-Is relating to motorway expansion, rehabilitation of national highways, regional connectivity corridors, and dualisation of key transport routes received approval during the period under review.
Among the major approvals, the ECNEC approved the revised PC-Is for multiple sections of the Karachi–Quetta-Chaman Road (N-25), including the Khuzdar-Kuchlak, Karachi (Hub)-Kararo & Wadh-Khuzdar and Kararo-Wadh & Kuchlak-Chaman sections, with a combined estimated cost exceeding PKR 415 billion.
Similarly, the 3rd revised PC-I for the Hyderabad–Sukkur Motorway (M-6), estimated at PKR 363.7 billion, also received approval, reflecting continued emphasis on the development of a high-capacity motorway infrastructure under the national connectivity framework.
and improvement of priority sections of N-5, dualization and rehabilitation of various sections of the Indus Highway (N-55), construction of the Sialkot–Eminabad road up to Kamoki, and extension of Margalla Highway from G.T. Road (N-5) to Motorway (M-1). In addition, revised PC-Is relating to land acquisition for the
Karachi–Lahore Motorway, the Sialkot–Sambrial–Kharian Motorway, and the construction of the Kharian–Rawalpindi (M-13) six-lane fenced motorway under the PPP arrangement was approved.
Among the major projects processed during the period were the Karachi-Hyderabad Motorway (M-10) project with an estimated cost of over PKR 511 billion, the Lahore-Sahiwal Bahawalnagar Motorway estimated at PKR 406.9 billion, and the Ghulam Khan-Esa Khel Motorway project costing PKR 184.5 billion.
Under the CPEC, the Government-to-Government (G2G) Framework Agreement, the Thakot-Raikot Project is being implemented as part of the Karakoram Highway (KKH) realignment in a phased manner.
The Survey further stated that ML-1 upgradation remains a strategic priority for railway modernization and the development of an integrated transport corridor under CPEC2.0. In this regard, third-party financing negotiations for the Karachi-Rohri section are under way while a detailed financial proposal for the Rohri-Peshawar sections has been prepared to explore potential Chinese financing for the remaining segments.
Pakistan Railways remains an integral component of the national transport infrastructure, playing a vital role in facilitating passenger mobility, freight transportation, and economic integration across the country.
Operating a network of 444 locomotives over 7,791 kms of route length, the railway system transported 24.16 million passengers during July-March FY 2026, while freight operations reached 4,839 million tonne-kilometers, reflecting its continued importance in supporting trade and logistics activity. During the period under review, Pakistan Railways generated gross earnings of Rs 63.6 billion, compared to Rs 65.2 billion in the corresponding period last year.
In the aviation industry, a major milestone was achieved in January 2025 when the European Union Aviation Safety Agency (EASA) lifted its four-and-a-half-year ban, allowing Pakistan International Airlines (PIA) to resume international operations, reflecting strengthened safety oversight and enhanced regulatory compliance. PIA resumed direct Islamabad–Paris flights, re-entering a key European market and improving connectivity for the Pakistani diaspora, while interline arrangements, including with Air France, facilitated onward access to multiple destinations across Europe.
In April 2025, PIA re-established connectivity with Central Asia through the resumption of Baku operations, supporting renewed momentum in regional trade, tourism, and cultural engagement.
The restoration of United Kingdom operations marked another significant development, with PIA recommencing direct services to Manchester in October 2025 after nearly five years under Third Country Operator (TCO) approval.
Building on the gains achieved in 2025, PIA enters 2026 with improved operational efficiency, enhanced service quality, and stronger customer orientation. The privatization process is expected to further consolidate these gains by reinforcing commercial discipline and supporting continued improvements in operational and service standards.
The Pakistan National Shipping Corporation (PNSC) Group reported a net profit after tax of PKR 7.5 billion, compared to PKR 15.4 billion in the corresponding period last year; however, the standalone entity posted a loss of PKR 1.16 billion against a profit of PKR 3.7 billion in the same period last year.
Building upon its strategic importance, development activities at Gwadar Port continued under the CPEC to enhance its commercial viability and operational capacity.
In this regard, China Overseas Port Holding Company (COPHC) completed the master planning and feasibility studies for the main Free Zone spread over 2,281
acres, while construction work on several industrial units has also commenced, reflecting gradual progress toward industrial and business development at the port.
Port operations also continued to gain momentum, with sustained efforts to increase commercial shipping activity and improve port utilization. International shipping liners, including COSCO and Sino-Trans, maintained regular calls at Gwadar Port, while weekly container services by COSCO continued to facilitate cargo movement. These developments are expected to further support Gwadar Port’s emergence as a regional trade, logistics, and transshipment hub.
In the survey performance of PEMRA, Pakistan Broadcasting Corporation, PEMR, PTV, Port Qasim Authority, Karachi Port Trust, and Pakistan Post Office were also comprehensively elaborated.
The survey stated that Pakistan’s continued focus on expanding connectivity through modernization of logistics and port infrastructure and the integration of digital technologies is essential.
Going forward, sustained investment, policy continuity, and adoption of modern, technology-driven solutions will be critical to enhancing efficiency, reducing costs, and strengthening Pakistan’s position as a regional trade and logistics hub, thereby supporting long-term, inclusive economic growth.