NHA Decides to Drop Rs68.9 Billion Lyari Corridor Project Due to Funding Issues
The National Highways Authority (NHA) has ruled out the proposed four-lane Lyari Elevated Freight Corridor in Karachi, estimating the project cost at Rs68.9 billion.
Officials, speaking before the National Assembly’s Standing Committee on Economic Affairs, explained that the plan would require a substantial Viability Gap Fund and loans covering around 35% of expenses.
Karachi Northern Bypass (KNB) Alternative
Instead of pursuing the elevated corridor, the NHA is now evaluating other options to improve freight transport. The leading alternative under review is the Karachi Northern Bypass (KNB), which may be upgraded from its current two lanes into a four- to six-lane motorway-standard route.
Committee’s Concerns
During the meeting, MNA Muhammad Jawed Hanif Khan argued that the project could substantially reduce logistics costs for exporters and importers, as well as reduce traffic congestion in Karachi.
The standing committee, with full support, recommended adding the Lyari project to the Public Sector Development Program (PSDP).
Meanwhile, NHA officials confirmed that a broader plan is being prepared to strengthen freight mobility and logistics infrastructure across Karachi.
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