The National Assembly Standing Committee on Economic Affairs Division met in Islamabad on 10 February 2026 under the acting chairmanship of Dr Mirza Ikhtiar Baig to review infrastructure priorities, including the Lyari Elevated Freight Corridor and the K-IV water supply project.
Committee members stressed the strategic value of the Lyari Corridor for national logistics and economic development, urging that the project be executed through the Public Sector Development Programme to ensure cost efficiency and protect public funds. The committee argued PSDP financing would minimize long-term fiscal liabilities compared with an external loan model while enabling an indigenous design that maximizes local resources.
Officials briefed the committee on competing cost estimates for the Lyari Corridor. The Korean Exim Bank proposed financing a model with an estimated construction cost of Rs 164 billion and a 40-year loan at 1 percent interest, while the National Highway Authority’s locally executed design was assessed at Rs 88.6 billion. The Exim Bank option included imported steel bridges estimated at Rs 61 billion, whereas the NHA indicated comparable concrete bridges could be built for about Rs 23 billion, resulting in substantial savings to the national exchequer.
On this basis the committee recommended that the Lyari Corridor be built through PSDP using a cost-efficient indigenous design, with expenditure phased over three years at roughly Rs 40 billion per year to reduce immediate fiscal pressure and ensure value for money.
The committee was also briefed on the Central Asia Regional Economic Cooperation programme financed by the Asian Development Bank. Progress on Tranche-I and Tranche-II was described as commendable, but Tranche-III has faced delays mainly due to land acquisition challenges, procedural hold-ups and procurement inefficiencies. Members expressed grave concern about these delays, noting they undermine the programme’s timelines and benefits, and strongly urged that outstanding issues be resolved as a priority to expedite Tranche-III.
Officials provided updates on World Bank-funded projects including the Khyber Pass Economic Corridor, which remains at the design stage with progress affected by procedural delays. The Karachi Mobility Project and the Khyber Pakhtunkhwa Rural Accessibility Project were highlighted for their potential to improve urban mobility and rural all-weather connectivity respectively, with the committee emphasizing the need for timely execution and robust coordination with donors.
The meeting, attended by MNAs including Dr Mirza Ikhtiar Baig, Muhammad Tufail, Muhammad Khan Daha, Ammar Ahmad Khan Leghari, Akhtar Bibi, Huma Chughtai, Syeda Shehla Raza, Muhammad Jawed Hanif Khan, Neelam and Zeb Jaffar, called on relevant ministries and agencies to streamline procedures, strengthen monitoring and protect public finances while advancing priority infrastructure projects such as the Lyari Corridor.
