It has been recently reported that the government of Pakistan has allocated PKR 337.28 billion for the Communication division for fiscal year 2017-18. Moreover, as part of the Public Sector Development Program (PSDP), the government has also decided to allocate more than PKR 70 billion for road and infrastructure development projects related to China-Pakistan Economic Corridor (CPEC).
The government will be getting PKR 90.15 billion in foreign aid while the remaining amount will be comprised of local investments. For the current fiscal year, the government has allocated PKR 188 billion for the construction of roads and highways, out of which PKR 165.15 billion has already been used. It is important to note that National Highway Authority (NHA) had demanded PKR 304 billion for developmental purposes for the current fiscal year.
For 76 projects, NHA had requested PKR 700 billion including PKR 500 billion for CPEC related projects for fiscal year 2017-18. The proposed amount includes PKR 337.6 billion foreign aid and PKR 364.8 billion local investments. However, against the requested amount the government has allocated PKR 337.28 billion for PSDP and PKR 70 billion for CPEC projects.
Majority of the amount will be going towards construction of roads, highways, and infrastructure for CPEC related projects. The government has allocated a huge sum of PKR 38 billion for Hakla on M1 to Yarik Dera Ismail Khan Motorway, PKR 25.25 billion for 118 km road from Thakot to Havelian, and PKR 1.5 billion for road from Basim to Khuzdar.
Moreover, the government has also allocated PKR 56 billion for Lahore to Abdul Hakeem section, PKR 11 billion to upgrade the motorway from Kohat to Jhand, and PKR 9.5 billion for Sialkot-Lahore Motorway. Apart from this, the government has also set aside PKR 12.05 billion for new NHA schemes under PSDP for the fiscal year of 2017-18.
Infrastructure projects are on the rise for CPEC related projects with China approving additional financing last month. This increased the total investment volume from $55 billion to $62 billion. The project started off with investment program of $46 billion, but investment volume has been pushed up significantly in order to develop power, infrastructure and road projects in the country.