Senate body concerned at NHA’s rising debt

ISLAMABAD: The Senate Standing Committee on Planning, Development and Special Initiatives expressed serious concern over the National Highway Authority’s (NHA) mounting debt burden, directing the authority to submit a comprehensive debt restructuring plan within 10 days while questioning the continued financing of non-commercial road projects through loans. The panel, met here on Wednesday with Senator Quratulain Marri in the chair, questioned NHA’s escalating debt and observed that public service road projects should be financed through government grants rather than loans that continue to strain the Public Sector Development Programme (PSDP). The committee reviewed PSDP-funded infrastructure projects, including Cash Development Loans (CDL) extended to the National Highway Authority (NHA), as well as the implementation of the Prime Minister’s National Health Programme under the PSDP. READ MORE: Financial Fact-Check: NHA operates with Rs43bn surplus, defying ‘Loss-Making’ labels The chairperson observed that roads constructed as a public service obligation should preferably be financed through grants rather than loans. The committee took up the matter after noting that although the PSDP allocates funds for road infrastructure projects, a substantial portion is deducted for debt servicing, particularly interest payments, resulting in delays in project execution. NHA officials said that the NHA’s debt portfolio comprises both principal liabilities and accumulated interest, while substantial deductions have been made from PSDP allocations for debt servicing over the years, with a significant portion used for interest payments. Officials informed the committee that the current proposal seeks the capitalisation of outstanding mark-up on CDL and foreign loans until completion of the ADB-supported State-Owned Enterprise Transformation Programme. They said that the Finance Division has linked any moratorium to the completion of debt mapping, third-party evaluation of commercially viable projects, restructuring proposals, and approval by the competent forum before December 31, 2026. The committee observed that despite the Federal Cabinet’s decision of January 20, 2021, to prepare a comprehensive business plan and convert non-commercial projects into grant-funded schemes, little progress had been made. The chairperson directed the NHA to submit within 10 days a comprehensive debt restructuring proposal, the implementation status of Cabinet and ECC decisions, project classification, and the future financing mechanism. NHA officials informed the committee that toll revenue currently amounts to approximately Rs120 billion annually, which is used for road maintenance, salaries, and operational expenses. The committee also reviewed the progress of major motorway projects. NHA officials informed the Senate body that work on the Hyderabad-Sukkur (M-6) Motorway has been divided into five segments, with financing arrangements completed for two segments and physical work on additional sections expected to begin by September 2026. The committee also reviewed the implementation of the Prime Minister’s National Health Programme. Officials from the Ministry of National Health Services, Regulations and Coordination informed the committee that the programme currently provides Universal Health Coverage (UHC) in ICT, Azad Jammu and Kashmir, Gilgit-Baltistan, Punjab, Khyber Pakhtunkhwa, and Balochistan, while consultations with the Government of Sindh are continuing regarding province-wide implementation. Officials further informed the committee that the programme provides annual inpatient health coverage of up to Rs1 million per family through a network of more than 600 public and private hospitals under a competitive third-party insurance model implemented by the State Life Insurance Corporation. They said catastrophic illnesses, including cardiac diseases, cancer treatment, dialysis, organ failure, burns, trauma, and other major procedures, are covered under the scheme. Members questioned the continued reliance on third-party insurance mechanisms and stressed the need to improve public hospitals alongside health financing reforms. The meeting was attended by Senators Jam Saifullah Khan, Shahadat Awan, Dr. Afnan Ullah Khan, and Saadia Abbasi. Senior officials from the Ministry of Planning, Development and Special Initiatives, the Ministry of Finance, the Ministry of Communications, the National Highway Authority, the Ministry of National Health Services, Regulations and Coordination, and other relevant stakeholders were also present. Copyright Business Recorder, 2026