Govt Directs NHA to Focus on Financially Viable Projects

Federal Minister for Economic Affairs Senator Ahad Khan Cheema has instructed the National Highway Authority (NHA) to concentrate on projects with financial viability and draft a practical business plan to guarantee long-term sustainability and evade excessive debt-servicing burdens. During a session to evaluate the NHA's financial status, business plan, and an assessment from an Asian Development Bank (ADB) consultant, Cheema underscored the importance of clear execution schedules and an examination of the authority's organizational capabilities.

He ordered the NHA to incorporate practical commercial indicators in project planning documents, termed PC-Is, to aid the Central Development Working Party (CDWP) in their evaluation. Cheema also urged the classification of projects based on financial viability and funding needs to guide investment decisions. The minister stressed that external or commercial funding should not result in reductions to the NHA's share under the Public Sector Development Programme (PSDP), highlighting that federal development funding remains crucial for the authority.

He also demanded the prompt disclosure of project feasibility evaluations to the Finance Division's Central Monitoring Unit (CMU). Cheema urged the NHA to accelerate coordination with the ADB consultant on project mapping, feasibility studies, and financial modeling to pinpoint economically viable ventures and lessen future debt-servicing hazards.