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In a key development to enhance regional infrastructure and economic mobility, the Board of Directors of the Public Private Partnership Authority (P3A) has approved two major motorway projects aimed at improving intercity connectivity across Punjab. The approval was granted during the board’s 39th meeting, chaired by Federal Minister for Planning and Development Ahsan Iqbal.
These projects, both to be developed under public-private models, are expected to reduce travel time, support regional trade, and drive industrial and economic growth in northern and central Punjab.
Revised Commercial Structure Approved for Sialkot–Kharian Motorway
One of the key highlights of the meeting was the approval of the revised commercial structure for the Sialkot–Kharian Motorway. The 69-kilometer stretch will be upgraded to a six-lane road and executed under a Public-Private Partnership (PPP) model.
This project aligns with the policy directives of the Special Investment Facilitation Council (SIFC) and is geared toward increasing mobility and catalyzing industrial development in one of Punjab’s key economic corridors.
The Sialkot–Kharian route, currently serving thousands of daily commuters and freight vehicles, will see significant capacity enhancement to handle growing transport demands.
Greenlight for Rs. 202.61 Billion Kharian–Rawalpindi Motorway
The second project approved is the 117.6-kilometer Kharian–Rawalpindi Motorway, a six-lane greenfield expressway that will be constructed under the Build-Operate-Transfer (BOT) model. The project carries an estimated cost of Rs. 202.61 billion, with Rs. 40 billion allocated as Viability Gap Funding (VGF) to ensure financial feasibility.
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This project will be awarded through international competitive bidding, reflecting the government’s commitment to transparency and global investment engagement.
Once completed, this high-speed corridor is expected to significantly reduce travel time between Rawalpindi and northern Punjab, while also facilitating smoother freight movement and enhancing overall economic integration in the region.
Strategic Goals and Regional Benefits
Both projects are being positioned as game-changers for the regional transport network. They are expected to:
- Reduce travel time for both passenger and commercial traffic
- Strengthen supply chains between industrial hubs
- Support SIFC’s goal of promoting sustainable infrastructure
- Improve access to markets, especially for small and medium enterprises (SMEs)
- Generate employment opportunities during and after construction
By leveraging private investment and global partnerships, the government aims to expand its motorway network without overburdening public finances, while ensuring modern infrastructure delivery standards.
