Latest news with #M-6
Express Tribune
10 hours ago
- Business
- Express Tribune
Minister says M-6 to cost Rs364b
Minister for Planning, Development and Special Initiatives has clarified that the Cost of M-6 Hyderabad-Sukkur Motorway rationalized from 395 billion to 364 billion. It is to clarify that during the Central Development Working Party (CDWP) meeting held on June 18, 2025, an error was made in the cost figure of the Hyderabad-Sukkur Motorway (M-6) project, which was inadvertently reported, said a release issued here on Friday. The correct revised cost of the project, as recommended to the Executive Committee of the National Economic Council (ECNEC), is Rs364 billion, not Rs395 billion as initially stated in press release.
Business Recorder
5 days ago
- Business
- Business Recorder
HCSTSI irked by meagre allocation for Sukkur-Hyderabad motorway
HYDERABAD: The office-bearers of the Hyderabad Chamber of Small Traders & Small Industry (HCSTSI) regretted that the federal allocated a mere Rs 15 billion in the 2025–26 PSDP for the Sukkur–Hyderabad Motorway (M-6) a strategic infrastructure project with a total estimated cost of over Rs 400 billion. They noted that at this pace, the project may not be completed even in the next decade. Such a symbolic and insufficient allocation reflects a serious lack of commitment and is tantamount to an injustice against Sindh and its vital role in Pakistan's trade and connectivity. The business community categorically rejects this approach and demands immediate and substantial funding to expedite the project. They said that although both governments have emphasised developmental objectives, digital reforms, and increased social sector allocations, there is a glaring lack of practical relief and structural support for small traders, manufacturers, and the broader business community. President HCSTSI Saleem Memon stated that initiatives like the SME Policy 2024–27, digital reforms in the FBR, the introduction of an automated refund system, and faceless audits are commendable steps. However, without timely and effective implementation, these initiatives may remain merely on paper. He cautioned that the imposition of new taxes on Cash on Delivery (COD), Digital Services and Digital Presence could severely impact small and emerging online businesses that are still in their nascent stages. Senior Vice President Ahmed Idrees Chohan pointed out the rise in withholding tax rates would further escalate the operational costs for small and medium enterprises (SMEs). Moreover, the federal budget failed to announce any relief in industrial electricity tariffs, time-of-use rates, or subsidies for SMEs, which is a significant shortcoming considering the ongoing energy cost burden. Vice President Shan Sehgal expressed concern over the increase in carbon levy, particularly the hike from 2.5% to 5% on furnace oil, stating that many small industries are still in transition and not yet fully equipped with renewable energy alternatives such as solar systems. This would further inflate production costs and hinder their competitiveness. Copyright Business Recorder, 2025
Express Tribune
15-05-2025
- Business
- Express Tribune
Mere Rs10b proposed for M-6 in next PSDP
Finance Minister Muhammad Aurangzeb on Thursday assured the National Assembly that the Sukkur-Hyderabad-Karachi motorway is essential for Pakistan's economic connectivity and will be completed at all costs. Responding to concerns raised by lawmakers, the minister said the project has been prioritised and will move forward with funding either through foreign sources or the Public Sector Development Programme (PSDP). He said the federal budget is currently being finalised, and the Minister for Planning will be informed about the importance of the project so that appropriate allocations can be made. Minister of State for Planning, Development and Special Initiatives, Chaudhry Armaghan Subhani while responding to a calling attention notice over the project's exclusion from the PSDP 2024-25, he clarified that although the motorway did not make it to this year's development portfolio, he assured members that the Sukkur-Hyderabad Motorway (M-6) would be included in the PSDP 202526 and treated as a priority initiative under multiple funding mechanisms. He added that the Ministry of Communications has already proposed Rs10 billion for the M-6 in the next PSDP, with the figure subject to revision. "This project will be reflected not only in the PSDP but also supported through foreign funding and Public-Private Partnership (PPP) models," he said adding that groundwork is underway to begin the project in the next fiscal year. He informed the house that global financial institutions, including the Asian Development Bank (ADB), are interested in co-financing the motorway and that negotiations are in progress. Dismissing allegations of regional favoritism, he said the M-6 is not a Punjab-centric project, pointing out that only an 18-kilometer stretch falls in Punjab, while the rest covers Sindh and Balochistan.
Express Tribune
14-04-2025
- Business
- Express Tribune
SIFC steps in to help reach payment settlement
The Special Investment Facilitation Council (SIFC) has intervened to help reach an out-of-court settlement between the National Highway Authority (NHA) and motorway project contractor Bina Puri. Under such an arrangement, the NHA will ensure that the agreed payment, according to a settlement agreement signed on January 10, 2025 between the two parties, is cleared and released from the road maintenance account. Both parties had agreed on a Rs1.29 billion settlement, requiring NHA to make payment within 60 working days (deadline: April 9, 2025). In case of delay, a 10% interest on the above amount will be levied from the date of signing the settlement agreement. However, despite having sufficient time for the approval of documents, the NHA failed to pursue timely approvals with the relevant forums. During a pre-Central Development Working Party (CDWP) meeting held on March 9, 2025, it was observed that the processing of a revised PC-1 was not required, as no earlier PC-1 had been approved nor any administrative nod issued. Moreover, the NHA clubbed the pending liabilities of two M-9 contracts (Bina Puri and SCORE) against the directives of SIFC, which were related only to Bina Puri. SIFC noted that NHA only provided the option of payment through the Public Sector Development Programme (PSDP). It was not considered well-conceived as the project was originally approved on a public-private partnership (PPP) model by the NHA executive board. Also, the SIFC was not fully briefed about the available payment options. Ministry of Communications secretary gave assurance that payment would be made from the road maintenance account within the timeline. The M-6 (Sukkur-Hyderabad) project was also tabled before SIFC. NHA chairman informed the council that a review of the feasibility study was carried out by international consultant AT Kearney, which led to the division of the project into five sections. The overall revised project cost on a PPP mode was estimated at Rs399 billion. The project qualification proposal was approved by P3WP (public-private partnership working party) on February 14, 2025. Moreover, the P3A board has to approve the project structure before the initiation of bidding for the first phase, covering section-I from Hyderabad to Tando Adam and section-II from Tando Adam to Nawabshah. NHA chairman further informed the council that after obtaining necessary approvals, bidding would commence in April 2025 and contracts would be awarded by October. NHA has also pitched the project to various foreign countries and international financial institutions (IFIs), including Azerbaijan and the Islamic Development Bank. It was decided that the Ministry of Communications and NHA would pursue all possible financing options for the M-6 project, including the public-private fund (PPF), G2G, IFIs and others while ensuring that PC-1 had the flexibility to adopt the most suitable financing approach for each project section. This hybrid financing model will help overcome delays in transitioning between financing modes and ensure smooth implementation. It was noted that end-to-end connectivity of motorways, particularly with Karachi Port, was critical. To enhance the viability of the project, the NHA should plan M-6 and M-10 (New Karachi-Hyderabad Motorway) as an integrated concept, ensuring seamless connectivity and efficient logistics movement. NHA will make all-out efforts to comply with the October 2025 timeline for awarding contracts, regardless of the financing mode finalised.
Express Tribune
09-04-2025
- Business
- Express Tribune
PM allays Sindh's concerns over motorway project
Prime Minister Shehbaz Sharif on Wednesday conveyed to Sindh CM Murad Ali Shah that the construction of the Hyderabad-Sukkur Motorway was still a priority of his government, and assured that the project would soon be included in the PSDP. The PM penned a letter to the chief minister over the project, known as M-6. Shehbaz informed CM Shah that Sindh's reservations on the issue were justified and that the construction work on the project would be initiated soon. A controversy erupted on the M-6 project recently, as Sindh's Local Government Minister Saeed Ghani raised objection during a meeting of the Executive Committee of the National Economic Council (Ecnec) to the approval of the Lahore-Sahiwal-Bahawalnagar Motorway. Talking to The Express Tribune, last week, Ghani had said that he raised objection to the construction of the new motorway at a 65% higher cost of Rs436 billion because work on the 306 kilometres Hyderabad-Sukkur Motorway could not start because of the lack of funding. Before the Ecnec meeting, National Highway Authority (NHA) Chairman Sheheryar Sultan had told the Senate Standing Committee on Planning that the government was in discussions with various creditors for financing the M-6 project. In January, Chief Minister Shah had written a letter to the prime minister, emphasising that constructing the Hyderabad-Sukkur Motorway was crucial for the nation's development. He accused the NHA of injustice in the ADP for the province. According to the letter from the PM said that he was personally interested in the construction of the motorway and wanted the project completed in the public-private mode but his efforts could not bear fruit. PM said that Sindh's reservations were valid, and the construction of the motorway would start soon. The motorway will be made part of the PSDP soon, the PM assured the chief minister.
