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Pakistan's Highway Authority Sinks Deeper Into Trillion-Rupee Debt Pit

Pakistan's national highway authority has become the federal government's most expensive liability, with cumulative losses surpassing PKR 2 trillion. Despite a doubling of toll receipts, its annual deficit remains close to PKR 300 billion, as expenses exceed PKR 400 billion. The authority's debt burden has ballooned to an estimated PKR 3.1 trillion and is growing by roughly PKR 300 billion each year. Official reviews urge new funding avenues and a restructuring of loan conditions to address the fundamentally broken financial model.

Key Points: Pakistan's Highway Authority Debt Crisis Deepens Despite Higher Tolls

  • PKR 3.1 trillion debt load
  • Annual losses near PKR 300 billion
  • Toll revenue doubled but deficits remain
  • Interest costs consume PKR 100 billion yearly
  • Ranked biggest public sector loss generator
2 min read

Pakistan's road lifeline sinks deeper into debt despite higher tolls

Pakistan's highway authority faces PKR 3.1 trillion debt, annual losses near PKR 300bn, threatening fiscal stability despite doubled toll revenue.

"operating with a built-in deficit and survives largely on repeated injections from the national exchequer - Dawn"

Islamabad, February 16

The body responsible for managing the country's highways has turned into the federal government's most expensive liability, with mounting borrowings and widening annual losses continuing to threaten fiscal stability even after a steep rise in user charges.

Recent official assessments underline that the authority's financial model remains fundamentally broken, as reported by Dawn.

According to Dawn, the finance ministry's monitoring wing stated that the organisation is operating with a built-in deficit and survives largely on repeated injections from the national exchequer.

The review of state-owned enterprises for the year ended June 2025 ranked it as the biggest loss generator in the public sector.

Its cumulative losses have climbed past PKR 2 trillion, with nearly half of that damage added in only three years.

Figures compiled in the report show yearly shortfalls hovering close to PKR 300 billion in recent years, following an even steeper hit in FY23.

The debt load paints an equally troubling picture.

Outstanding liabilities are estimated at around PKR 3.1 trillion and are expanding by roughly PKR 300 billion each year.

Interest payments already consume close to PKR 100 billion annually and are expected to surge sharply, increasing Pakistan's exposure, as it guarantees much of the borrowing.

Guarantees linked to partnership projects with private firms are compounding the risk.

Even though the federal government extended more than PKR 115 billion in fresh loans last year, the authority's financial health has not improved.

Assets have stagnated, equity has thinned year after year, and total liabilities have continued their relentless climb, as highlighted by Dawn.

Income growth, while visible, has failed to catch up with spending.

Toll receipts doubled and pushed operating revenue higher, yet overall earnings remained dwarfed by expenses exceeding PKR 400 billion, leaving another massive deficit at year's end.

Depreciation and ballooning finance costs are eating away at any gains.

The monitoring unit has urged new funding avenues, broader outsourcing, and a reworking of loan conditions, Dawn reported.

- ANI

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Reader Comments

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Priya S
Very sad to see. The people are paying higher tolls but the system is still sinking. The debt of PKR 3.1 trillion is a huge burden that will fall on taxpayers. It reminds us that transparency and accountability in public spending are non-negotiable, everywhere. Wishing stability for our neighbours.
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Aman W
Reading this while stuck in Bangalore traffic on a well-maintained (but expensive!) toll road. 😅 There's a lesson here: just raising user charges isn't enough. The financial model itself needs to be sound. Our NHAI has its challenges too, but this scale of loss is alarming. Hope they find a sustainable solution.
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Sarah B
From an economic perspective, this is a fiscal disaster in the making. Annual shortfalls of PKR 300bn? Interest payments of PKR 100bn? This drains resources from health and education. It underscores why state-owned enterprises often need professional, arm's-length management free from political interference. A tough but necessary reform.
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Karthik V
The report says the "financial model remains fundamentally broken." That's the core issue. Throwing more loans (PKR 115bn) at a broken model won't fix it. They need a complete overhaul. Infrastructure is vital for trade and growth. A stable Pakistan with functional infrastructure is better for the whole region's economy.
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Nisha Z
It's the ordinary people who suffer the most. They pay more for tolls, and their taxes go to bail out this loss-making authority instead of other services. Governance matters so much. This is a cautionary tale for all developing nations, including India. We

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