The federal government has clarified that only a portion of the Lahore–Sahiwal motorway project has been recommended for consideration, dismissing reports that it approved the full 295-kilometer alignment. Federal Planning Minister Ahsan Iqbal stated that the Central Development Working Party (CDWP) recommended just the already approved 18.5 km section from Lahore Ring Road at Hallok to Raja Jhang Interchange, while the remaining 276.5 km requires detailed feasibility and funding studies.
Recent media reports had claimed the CDWP had conditionally cleared the costly Rs. 465 billion provincial project, which was said to exceed initial estimates by Rs. 201 billion and potentially clash with the China–Pakistan Economic Corridor’s Mainline-I railway upgrade. Critics also argued that federal funding of a provincial scheme could violate the National Fiscal Pact and disrupt other priority projects.
Responding to the concerns, Iqbal clarified, “The CDWP granted only in principle approval for the remaining sections, instructing authorities to explore alternative financing, including public-private partnerships, without compromising funds for other key infrastructure projects.”
The minister emphasized that the federal government remains committed to equitable development across provinces. Current PSDP allocations prioritize Balochistan with Rs. 206 billion, followed by Sindh with Rs. 154 billion, ensuring regional development remains balanced. The CDWP has directed further studies on technical and economic viability before final approval for the motorway.
The Ministry of Communications and the National Highway Authority (NHA) have been asked to consider provincial contributions and PPP models for financing the project. Other ongoing federal projects include the Sukkur Hyderabad Motorway, dualization of the N-55, realignment of the Karakoram Highway, and the Lowari Tunnel upgrades, highlighting the government’s broader infrastructure priorities.