Govt Proposes Over Rs. 300 Billion PSDP Funds for Key Road Projects in FY26

Ahead of the federal budget 2025-26, the government has proposed allocations of over Rs. 300 billion for major road and highway infrastructure projects under the Public Sector Development Program (PSDP), sources told ProPakistani. A significant portion of the development funding is focused on the dualization and rehabilitation of critical national highways. The biggest proposed allocation of Rs. 40 billion is for the Karachi-Quetta-Chaman Road (N-25), covering the Karachi-Kararo and Wadh-Khuzdar sections. Another Rs. 40 billion has been earmarked for the Khuzdar-Kuchlak stretch of the same highway. The Hyderabad-Sukkur Motorway, a 306-km six-lane project, has also secured a proposed allocation of Rs. 30 billion, making it one of the largest single investments this year. Other road projects include: Interchanges and connectivity improvements were also prioritized, including Rs. 2 billion for Karachi–Lahore Motorway land acquisition, Rs. 1.34 billion for Kuchlak–Zhob dualization (land), and dozens of smaller road and drainage schemes in Sargodha, Gujrat, Bahawalpur, Mianwali, Faisalabad, Kasur, and Chakwal districts with proposed allocations between Rs. 100–800 million each. An amount of Rs. 2.5 billion has been proposed for SITE industrial roads in Karachi in the upcoming PSDP FY26, Rs. 4 billion for the Sindh Coastal Highway, Rs. 16 billion for NA-level development road schemes and over Rs. 14 billion for road infrastructure in Punjab through Pak-PWD and DDWP-sponsored packages. Many of these projects are part of regional integration corridors under the Central Asia Regional Economic Cooperation (CAREC) and Belt and Road Initiative (BRI).