Islamabad: The National Highways Authority (NHA) has declared the much-anticipated Lyari Elevated Freight Corridor in Karachi financially unfeasible, citing severe funding gaps and low investment viability.
The Rs68.9 billion project was reviewed during a meeting of the National Assembly Standing Committee on Economic Affairs, chaired by MNA Sher Ali Arbab. NHA officials informed the committee that the scheme required a massive upfront Viability Gap Fund (VGF) grant and an operational loan covering nearly 35% of total costs, making it unattractive for private-sector investment under a public-private partnership model.
Due to these financial constraints, the NHA has opted to shelve the plan for now and is instead considering alternatives. One key proposal is the expansion of the Karachi Northern Bypass (KNB), upgrading it from a two-lane road into a four- or six-lane motorway-standard route to manage freight traffic more efficiently.
Committee member MNA Muhammad Jawed Hanif Khan stressed that the Lyari freight corridor remains strategically vital, pointing out that it could significantly cut logistics costs for importers and exporters while easing congestion in Karachi. He urged the NHA to prioritize projects on economic grounds rather than political considerations.
Despite financial challenges, the committee recommended that the Lyari Elevated Freight Corridor be included in the Public Sector Development Program (PSDP). Officials assured members that a broader strategy is being developed to enhance freight transport and logistics infrastructure in Karachi, which serves as the country’s primary trade hub.
