Strategic infrastructure projects top govt agenda in 2025-26 Budget
Key infrastructure projects, including the Diamer-Bhasha Dam, Sukkur-Hyderabad Motorway, Chaman Road, and Phase-II of the Karakoram Highway, have been declared national priorities in the federal development budget for 2025-26. The government has allocated Rs. 1000 billion for development, with a strong focus on completing strategic national projects under fiscal constraints.
These announcements were made on Monday during the Annual Plan Coordination Committee (APCC) meeting chaired by Federal Minister for Planning, Development and Special Initiatives, Prof. Ahsan Iqbal.
In his address, the Minister emphasized that given the country's limited fiscal space, only critical and high-impact projects will be funded. He underscored the importance of completing strategic infrastructure projects on a priority basis and revealed that over 118 inactive or low-priority schemes have been terminated to streamline resources for vital initiatives.
Foreign-funded projects were also identified as a core component of the Public Sector Development Programme (PSDP), further strengthening the government's commitment to leveraging international assistance for national development.
Prof. Iqbal also shared a vision for elevating Pakistan's airline and railway sectors to global standards. He highlighted the introduction of third-party validation mechanisms, in line with the Prime Minister's directive, to enhance transparency and accountability in project execution.
Among the prioritized projects, the Diamer-Bhasha Dam stands out as a cornerstone initiative. Located on the Indus River in Gilgit-Baltistan, the dam will have a storage capacity of 8.1 million acre-feet and generate 4,500 megawatts of electricity, significantly boosting water conservation, renewable energy production, and flood control. The government has reaffirmed its commitment to accelerating construction through dedicated funding.
Another critical project is the 306-kilometer Sukkur-Hyderabad Motorway, the final segment of the Peshawar-Karachi Motorway (PKM). As a key component of the China-Pakistan Economic Corridor (CPEC), this six-lane, access-controlled highway will drastically reduce travel time between major urban centers, facilitate trade, and improve regional connectivity. The project includes advanced safety features and modern service facilities to enhance user experience.
The Chaman Road project, focusing on upgrading the Quetta-Chaman section of National Highway N-25, is another strategic priority. Serving as a vital trade link with Afghanistan and Central Asia, its development is expected to strengthen cross-border commerce and regional integration under the Central Asia Regional Economic Cooperation (CAREC) framework.
Meanwhile, Phase-II of the Karakoram Highway (KKH), stretching from Thakot to Raikot, remains a crucial part of CPEC's northern infrastructure network. The project involves road widening, bridge construction, and tunnel development to improve connectivity with China via the Khunjerab Pass. Given its economic and geopolitical significance, the government has pledged to expedite its completion.
The APCC meeting was attended by Federal Minister Khalid Maqbool, federal secretaries, representatives from the State Bank of Pakistan, provincial governments, heads of national and provincial institutions, and other senior officials.
