The National Highway Authority (NHA) of Pakistan is grappling with severe financial losses, as its net deficit for the fiscal year 2024-25 has surpassed Rs 318 billion. With total liabilities now soaring to Rs 3.1 trillion, the annual revenue of just Rs 54 billion appears woefully insufficient.
Communications Minister Abdul Aleem Khan revealed that though this year’s deficit is 23% lower than last year’s Rs 413 billion, it remains nearly double that of 2022. Khan clarified that a large portion of the deficit stems from non-cash expenditures like interest on loans and currency exchange losses, which do not reflect direct cash outflows.
The Ministry of Finance, however, painted a more concerning picture, highlighting NHA’s reliance on loans guaranteed by the government. With an annual debt increase of Rs 300 billion and rising interest that could hit Rs 150 billion a year, this poses a growing financial burden for Pakistan.
Adding to the woes, inflation and fluctuating construction material costs make NHA’s infrastructure projects vulnerable to escalating expenses. Despite having assets worth Rs 5.8 trillion, the authority’s operational losses indicate a heavy dependence on federal government support.
The Ministry of Finance warns that unchecked fiscal risks like inflation, debt obligations, and operational inefficiencies could further destabilize the NHA’s financial outlook. A call for structural reforms to improve revenue generation and financial management becomes increasingly urgent as the burden deepens.
