Azerbaijan has offered over $ 1 billion dollars loan in cash deposit in response to Pakistan’s request for funding $ 1.2 billion SUKKUR-HYDERABAD MOTION MIDDLE in a disagreement between different government departments on the lending mode.

Prime Minister Shehbaz Sharif had requested the Azerbaijanian government to finance two infrastructure projects totaling $ 1.8 billion during his recent visit to the Central Asian state. These include $ 1.2 billion SUKKUR-HYDERABAD HEALTH (M-6) and a new Hyderabad-Karachi Motorway (M-9) to be designed on a new route to a minimum cost of $ 600 million.

The Government of Azerbaijan has proposed two options in response to Pakistan’s request to finance highways, according to the National Highway Authority officials.

It has suggested that the state oil fund for the Republic of Azerbaijan can place a cash deposit in the State Bank of Pakistan and the federal government can then lend the money to the National Highway Authority for the construction of highways, they added.

The second possibility is that Azerbaijan, in collaboration with the Islamic Development Bank, can directly finance the Sukkur-Hyderabad motorway-the lack of link on the south-northern national highway link, the officials said.

Azerbaijan had previously stated having made an investment of $ 2 billion in Pakistan, but the Pakistani authorities could not give fulfilled projects for the investment.

The Sukkur-Hyderabad highway has a minimum estimated cost of $ 1.2 billion, and the government recently engaged the US company in Kearney to prepare the highway survey.

In addition to the Succo-Hyderabad motorway, Pakistan has also offered Azerbaijan to finance another Hyderabad-Karachi M-9 motorway, which it wants to build on a new route, away from the existing route.

The estimated costs of the new Hyderabad-Karachi motorway are $ 600 million, excluding the cost of land, according to the NHA authorities.

Four countries – China, Saudi Arabia, United Arab Emirates and Kuwait – have already cumulatively placed $ 12.7 billion in cash deposits with the central bank to support the thin foreign exchange reserves in Pakistan. Islamabad pays interest on these deposits that are rolled over each year due to inability to return the debt.

The sources said there was no consensus among the various Pakistani departments about Azerbaijan’s offer.

Deputy Prime Minister Ishaq Dar was also chairman of yet another round with interministerial meetings on investment project proposals with Azerbaijan.

DAR instructed that proposals for investment in infrastructure, oil, trade and information technology services can be completed by April 3, according to a message from his office.

The sources said the Ministry of Finance was not in favor of taking the cash deposit of $ 1 billion for the construction of a road project and serving it from the budget. The Ministry of Finance is of the opinion that NHA must directly borrow the money from Azerbaijan instead of directing the money through a cash deposit.

According to the opportunity survey conducted by M/S on Kearney, the Sukkur-Hyderabad project is divided into five sections. Project qualification proposals from the project have been approved by the public private partnership Authority Working Party last month for subsequent approval of its board of directors.

After approving project proposals from P3A, the bidding process for the first phase of Hyderabad-Tando Adam and the second phase: Tando Adam-Nawabshah will be initiated in the public private partnership state. IDB has indicated to finance these two sections, but the final decision will be made by the bank after a visit by its assessment mission next month, the officials said.

Azerbaijan indicated to finance the remaining three sections as part of his second option.

In the event that the government constructs the M-6 motorway under the public-private partnership state, it will take two and a half years to completion. But if the project is funded from the public sector development program, the time frame will be much longer than this due to limited fiscal space, according to the NHA authorities.

A few days ago, the federal government decided to finance a Punjab-centered new highway at a price of RS436 billion by ignoring the SUKKUR HYDEBAD motorway.

The NHA officials said the government also wanted to develop a new six-track M-9 highway to improve the connection between Karachi and Hyderabad, while they integrated Pakistan’s trading corridors.

This project aims to reduce travel time, improve road safety and support industrial and commercial growth. It will give uninterrupted quick access between Karachi and Hyderabad, they added.

M-9, which is the Hyderabad-Karachi motorway, costs more than $ 600 million. NHA has hired the Services for Consultant, M/S Nespak, to have completed the opportunity survey and detailed design on a quick track.

The government has been unable to bring any new foreign investments in Pakistan because of unstable political, security and economic conditions.