July 27, 2025

Govt Approves Two New Motorway Projects for Punjab

In a landmark decision, Pakistan’s governing bodies have greenlit two new motorway projects in Punjab—marking a significant leap forward in provincial infrastructure, regional connectivity, and economic growth.


1. Lahore – Sahiwal – Bahawalnagar Motorway (Approx. 295 km)

  • Overview: The 295 km Lahore–Sahiwal–Bahawalnagar Motorway will connect Lahore, Kasur, Okara, Pakpattan, Sahiwal, and Bahawalnagar—transforming travel across southern Punjab.
  • Budget Update: Originally estimated at ₹Rs 264 billion, ECNEC has revised the cost upward by nearly 65% to Rs 436 billion.
  • Funding Strategy:
    • Federal PSDP funding is clearing the first 18.5 km section (Lahore Ring Road → Raiwind‑Kasur Interchange).
    • Punjab is being asked to contribute 50% of the total cost for the remaining distance.
  • Land Acquisition: 90% completed for the Package‑I section.
  • Controversy: Sindh province has protested, claiming it diverts federal funding from critical developments like the proposed Sukkur–Hyderabad Motorway (M‑6).

2. Sialkot – Kharian (M‑12) Motorway (~69 km, 6 lanes)

  • Project Profile: The M‑12 motorway links Sambrial (near Sialkot) to Kharian, crossing vital local hubs including Gujrat and Jalalpur Jattan.
  • Investment: Estimated at Rs 81.97 billion, the six-lane motorway is being developed by NHA under an aggressive two-year timeline (since July 2022).
  • Strategic Value:
    • It completes a crucial spur of the Karachi–Lahore Motorway (KLM), significantly boosting connectivity from Sialkot to the broader national motorway network. Govt Approves Two New Motorway Projects for Punjab.

🌐 Why This Matters

  1. Economic Uplift
    These new motorways will improve logistics across agriculture-heavy districts like Sahiwal, Pakpattan, and Sialkot, facilitating faster and cheaper cargo movement—boosting trade and market access.
  2. Time-Saving Travel
    Commuters and travelers in Punjab will benefit from reduced travel times and safer routes—significantly improving access to major urban centers and healthcare facilities.
  3. Job Creation
    Road construction, engineering, and maintenance work promise to generate substantial short- and medium-term employment across affected regions.
  4. Inter-Provincial Equity Concerns
    The diversion of federal funding toward Punjab’s projects—especially amid Sindh’s objections—raises questions of fiscal fairness under the National Fiscal Pact and IMF conditionalities.

🔭 Outlook and Challenges Ahead

ProjectNext StepsConcerns
Lahore–BahawalnagarFinalize PC‑I, formalize 50:50 funding deal, start major civil workManage rising costs; address inter-provincial funding fairness
Sialkot–Kharian (M‑12)Complete remaining construction, open interchanges, integrate with KLMStay on schedule; maximize PPP/BOT model efficiency

Execution remains critical: cost overruns, funding delays, and political disputes—if mishandled—could hinder timely completion. Yet if implemented effectively, both motorways stand to profoundly benefit Punjab’s economy and connectivity.


✍️ Final Take

Punjab’s new motorway approvals signal bold momentum in transport infrastructure—aiming to knit rural hubs and urban centers into a cohesive economic network. With Lahore–Bahawalnagar set to link south Punjab and the M‑12 motorway enhancing north-central connectivity, these are transformative projects in scope.

However, keeping them fiscally viable, regionally equitable, and on schedule will determine whether this drive becomes a blueprint for future national development—or another example of stalled ambition.

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