Government to Issue Sovereign Guarantees for Sialkot-Kharian Motorway

 
 
 
Posted by: IIPS Category: Daily Insights Tags: Comments: 0

To expedite work on the Sialkot-Kharian Motorway, the government of Pakistan has issued a Government Sovereign Guarantee worth Rs 6.9 billion through the National Bank of Pakistan. The project was approved by the Executive Committee of the National Economic Council (ECNEC) in its meeting held in March 2021. The project was to be built on a Build-Operate-Transfer (BoT) basis for Rs 43.383 billion.

According to the Ministry of Communication, the concession agreement will be backed by a sovereign guarantee acceptable to the financiers of the motorway project. The security will be provided to the National Highway Authority (NHA) through the GOP within three months of the effective date. The Finance Division has also confirmed the guarantee space worth 6.9 USD billion for the project.

The establishment of a motorway from Sialkot to Kharian will significantly increase the efficiency of transportation and logistics in the region. The 65-km long motorway is a four-lane highway that will help mitigate traffic congestion of cars. This route falls in the middle of the Lahore-Islamabad Motorway and is expected to provide an alternative route between the two cities. The integration of this motorway will facilitate travel and tourism in the largest province w.r.t population.

Share this post

Leave a Reply

Your email address will not be published. Required fields are marked *

IMARAT Institute of Policy Studies

Interested in knowing more about us?

Sign up for our newsletter