Islamabad, 10th February, 2026, A meeting of National Assembly Standing Committee on Economic Affairs Division was held under the Acting Chairmanship of Dr. Mirza Ikhtiar Baig, MNA at Committee Room Ministry of Economic Affairs Division, Islamabad.
The Standing Committee deliberated on K-IV projects regarding water supply and Lyari Elevated Freight Corridor (LEFC) project. Further, the committee emphasized on the strategic significance of LEFC for national logistics and economic development. The Committee stressed that the project should be undertaken through inclusion in the Public Sector Development Programme (PSDP) as the most appropriate and cost-effective financing mechanism.
During the briefing, the Committee was informed that the Korean Exim Bank had proposed financing the project at an estimated construction cost of Rs. 164 billion, while the National Highway Authority (NHA) had assessed the project cost at Rs. 88.6 billion under a locally executed model. Although the Korean Exim Bank offered a loan for a period of forty years at an interest rate of one percent, the Committee observed that PSDP financing would better serve national interests by minimizing overall project cost and long-term fiscal liabilities.
Dr. Mirza Ikhtiar Baig MNA chairing National Assembly standing committee meeting on Economic Affairs on 10th Feb at Ministry of Economic Affairs Islamabad, attended by MNAs Shehla Raza, Ammar Khan Leghari, Mohd Khan Daha, Neelum Kumari, Huma Akhtar Chugtai, Akhtar Bibi, Javed Hanif, parliamentary secretary economic affairs Jaffer Zaib, Federal Secretaries,& parliamentarians of various political parties., Presentation were given on Lyari elevated freight corridor and K4 water project for Karachi.
The Committee noted that the economic potential of the Lyari Elevated Freight Corridor is substantial, as the project would enhance freight mobility, reduce traffic congestion in Karachi, optimize the utilization of Karachi Port Trust, and make a significant contribution to national trade and economic growth.
It was further apprised that the Korean Exim Bank’s proposed model involves a heavier and more expensive design, including the construction of imported steel bridges. The estimated cost of these steel bridges alone was reported to be Rs. 61 billion. In contrast, the NHA has the technical capability to construct comparable bridges using concrete at an estimated cost of Rs. 23 billion, resulting in considerable savings to the national exchequer.
In view of the above, the Committee recommended that the Lyari Elevated Freight Corridor project be executed through PSDP using a cost-efficient, indigenous design, ensuring optimal utilization of local resources, reduction in project cost, and protection of public funds, while advancing the country’s long-term economic and infrastructure objectives.The committee further suggested that through PSDP the cost can be divided into three years with approximately Rs. 40 bn each year to build Lyari Elevated Freight Corridor.
The Standing Committee was briefed on the progress of the Central Asia Regional Economic Cooperation (CAREC) programme being financed by the Asian Development Bank (ADB). The Committee was informed that the progress on Tranche-I and Tranche-II has been commendable, while Tranche-III is currently under implementation. It was further apprised that Tranche-IV has not yet been initiated, as its commencement is contingent upon the completion of Tranche-III.
The Committee was informed that delays in Tranche-III were mainly due to land acquisition issues, procedural delays, and inefficiencies in contract awards and procurement processes. Taking serious notice of the slow pace of work, the Committee expressed grave concern over the delay in completion of Tranche-III and emphasized that such delays adversely affect the overall timeline and intended outcomes of the CAREC programme. The Committee strongly recommended that all outstanding issues be resolved on a priority basis and that implementation of Tranche-III be expedited to achieve the desired objectives.
The Committee was also briefed on infrastructure projects being financed by the World Bank. In this context, it was informed that the Khyber Pass Economic Corridor Project is currently at the design stage; however, progress has been delayed due to procedural issues. The Committee noted the strategic importance of the project, as it aims to enhance connectivity between Pakistan and Afghanistan, reduce travel time and logistics costs, and promote regional trade.
Furthermore, the Committee was apprised of the Karachi Mobility Project, which seeks to improve urban mobility. The Committee acknowledged the significance of the project in addressing the growing transportation needs of the metropolitan city.
The Committee was also briefed on the Khyber Pakhtunkhwa Rural Accessibility Project, which aims to improve all-weather rural road connectivity across Khyber Pakhtunkhwa.
The Committee emphasized the need for timely execution of all donor-funded projects and recommended that the concerned authorities ensure effective coordination, streamlined procedures, and robust monitoring mechanisms to avoid delays and to maximize the socio-economic benefits of these initiatives.
The meeting was attended by MNA’s including Dr. Mirza Ikhtair Baig, Mr. Muhammad Tufail, Mr. Muhammad Khan Daha, Mr. Ammar Ahmad Khan Leghari, Ms. Akhtar Bibi, Ms. Huma Chughtai, Syeda Shehla Raza, Mr. Muhammad Jawed Hanif Khan, Ms. Neelam and Ms. Zeb Jaffar. The meeting was also attended by Secretary EAD and officials of Ministry of Economic Affairs and other officers concerned.
