Islamabad:
The Government on Friday, the construction of three different sections of the “Killer Road”, the Baluchistan or N-25 Highway, at an estimated cost of RS415 billion, which is financed through RS8 per liter of high speed gravamen and diesel.
The Central Development Work Party (CDWP) cleared, in principle, the construction of the three sections that have a total length of 692 kilometers with an estimated cost of RS415 billion for three different sections, according to the officials of the Ministry of Planning.
Once completed in at least three years, there will be a dual road to Quetta to Karachi, which will also open new paths of economic development and connectivity. The vice president of the Planning Commission and the Minister of Planning, Ahsan IQBAL, presided over the CDWP meeting.
The project, which will be executed in three different sections, will be presented to the Executive Committee of the National Economic Council (ECNEC) for its final approval after the National Road Authority addresses consultations raised at the CDWP meeting on Friday.
The CDWP has the mandate to approve up to RS7.5 billion projects and send the highest cost schemes to ECNEC, which is chaired by the Vice Prime Minister Ishaq Dar.
The CDWP recommended the duration of Karachi-Quetta-Chaman Road with 278 kilometers long for the approval of ECNEC. This route will be built with a cost of RS183.4 billion in three years and RS33 billion have been reserved in the budget for the current fiscal year.
However, given the low allocations in the first year, it will be a challenge to complete this main route in three years unless the allocation increases to RS75 billion annually from next fiscal year.
In principle, the CDWP cleared the duration of RS99 billion that is worthwhile in the Khuzdar-Kuchlak section of N-25 with 332 kilometers long. For the current fiscal year, the Government has assigned RS34 billion for its construction.
The cost of the Khuzdar-Kuchlak section is lower compared to the other two roads due to the award of contracts in 2021. Around 52% work on this Khuzdar-Kuchlak road has already been completed and the remaining work is expected to end in two years.
The CDWP also sanctioned the duration of the Karoro Wadh section and the Khuzdar Chaman section at a cost of RS133 billion to build a 104 -kilometer road. For this fiscal year, they have been allocated to RS33 billion for this section. This project will need assignment of RS50 billion per year for the next two fiscal years to complete the scheme in time.
Prime Minister Shehbaz Sharif, in April of this year, imposed an additional lien of RS8 per liter in each liter of gasoline and diesel consumed by rich and poor to finance these mortal roads. There were criticism against the decision of the prime minister due to the fact that people are already taxed and that the government should wisely use these resources instead of putting more charges.
Currently, the Government charges RS75 per liter of oil tax, RS2.5 per liter of climate tax and 10% of custom taxes in each liter of gasoline sold in Pakistan, which makes it one of the heaviest imposing products. Gasoline is now sold to RS272 per liter after adding all taxes and profit margins of the dealers.
But Prime Minister Shehbaz reacted to these criticisms and declared that these opposite road projects in Baluchistan were in a narrow mind. “We will complete the Karachi, Kalat, Khuzdar and Quetta highway projects with the highest level,” he had promised.
The prime minister had said that the initiative to build roads reflected the aspirations of the people of Baluchistan and aimed to improve connectivity and guarantee safer trips in the province.
The CDWP raised questions about the alignment of the roads, the reviews in the cost and the acquisition of land. Once the sponsorship ministries address these questions, the projects will be presented to the ECNEC for the final approval.
For the current fiscal year, the Government has assigned RS1 Billones for the Federal Public Sector Development Program. Of this, RS210 billion for several Baluchistan projects have been reserved.
