Islamabad:
On Friday, the government cleared the construction of three different sections of ‘Killer Road’, Balochistan Expressway or N-25, at an estimated cost of RS415 billion funded through RS8 per year. Liter Levy on gasoline and high -speed diesel.
The central development article (CDWP) in principle cleared the construction of the three sections with a total length of 692 kilometers with an estimated cost of RS415 billion for three different sections, according to the Ministry of Planning.
When completed at least three years, there will be a double lane from Quetta to Karachi, which also opens up new opportunities for economic development and connection. Deputy Chairman of the Planning Commission and Planning Minister Ahsan Iqbal chaired the CDWP meeting.
The project, which will be executed in three different sections, will be presented to the Executive Committee of the National Economic Council (ECNEC) for its final approval after the National Highway Authority addresses queries raised at the CDWP meeting on Friday.
The CDWP has the mandate to approve of up to RS7.5 billion projects and refer the higher cost schemes to ECNEC, chairman of the Deputy Prime Minister Ishaq Dar.
CDWP recommended the dualization of Karachi-Quetta-Chaman Road with 278 kilometers length to approve ECNEC. This route will be constructed with a cost of RS183.4 billion in three years, and RS33 billion is allocated in the budget for the current financial year.
Given the low allocations in the first year, it will be challenging to implement this major route in three years, unless the allocation is increased to RS75 billion annually from the next financial year.
CDWP also cleared in principle RS99 billion. For the current financial year, the government has allocated RS34 billion to its construction.
The cost of the Khuzdar-Kuchlak section is less compared to the other two ways due to the allocation of contracts in the year 2021.
CDWP also sanctioned the dualization of the Karoro WADH section & Khuzdar Chaman section at a price of RS133 billion to build 104 kilometers of roads. For this financial year, RS33 billion has been earmarked for this section. This project needs RS50 billion a year allocating the next two financial years to end the scheme on time.
Prime Minister Shehbaz Sharif In April this year, an additional RS8 per Liter of tax on each liter of gasoline and diesel that were consumed by rich and poor to finance these deadly roads. There had been criticism against the Prime Minister’s decision due to the fact that people are already heavily taxed and the government should wisely use these resources instead of putting more burdens.
The government is currently charging RS75 per year. Liter of petroleum tax, RS2.5 per Liter of climate tax and 10% custom customs duty on each liter of gasoline sold in Pakistan, making it one of the heaviest taxed products. The gasoline is now sold to RS272 per. Liter after adding all taxes and profit margins for the dealers.
But Prime Minister Shehbaz responded to this criticism and declared that the opposite road projects in Balochistan were narrow. “We will end Karachi, Kalat, Khuzdar and Quetta Highway projects to the highest standard,” he had promised.
The premiere had said that the initiative to build roads reflected the ambitions of the population of Balochistan and was aimed at improving the connection and ensuring more secure journey in the province.
CDWP raised questions about adjusting roads, costs in costs and the acquisition of land. When the sponsorship ministries address these issues, the projects will be asked before ECNEC for final approval.
For the current financial year, the government has allocated RS1 trillion to the federal development program for the public sector. Out of this, RS210 billion is set aside for various projects in Balochistan.
