News
Pakistan Allocates Rs12.75bn for Six Major Road and Infrastructure Projects
By Mariam Khan
Real Estate Analyst
3 min read
The federal government has allocated Rs12.75 billion under the Public Sector Development Programme (PSDP) 2026–27 for six major infrastructure projects. Their combined approved cost is approximately Rs1.065 trillion. The reports were published on October 14, 2026. The allocation covers road and motorway schemes, tunnel-related infrastructure and land acquisition. The largest single allocation is Rs5 billion for relocating a section of the Karakoram Highway between Thakot and Raikot. Development budgets are published by the Planning Commission, and highway projects by the National Highway Authority.
Why the Allocation Is Small Next to the Project Cost
Rs12.75 billion is about 1.2 percent of the combined project cost of Rs1.065 trillion (our own calculation). The Rs5 billion for the Karakoram Highway section is about 39 percent of the total allocation (our own calculation). The reports we have seen do not say how much each of the other five projects receives, or how much has already been spent. We therefore cannot say how far along any project is.
Why an Allocation Is Not Construction Progress
A budget allocation sets aside money for a financial year. It does not guarantee that funds will be released on time or that work will advance at the pace planned. The reports do not give completion dates for the six projects. Because the allocation covers land acquisition as well as construction, part of the money may go to compensating owners and not to building.
Why the Karakoram Highway Relocation Stands Out
The largest allocation is for relocating a section of the Karakoram Highway between Thakot and Raikot. The reports do not explain why the section is being relocated or when work is due to finish, so we do not offer a reason. Relocation projects can change which areas are served by the road, but that depends on the final route and on timelines that have not been published.
Why Connectivity Matters for Property
Better roads can improve regional connectivity and create opportunities for commercial development along their routes. That effect depends on construction actually advancing, and the reports do not name the other five projects or where they run. No land or property in any area should be treated as benefiting until the routes and timelines are confirmed.
What This Means for Investors, Developers and Residents
Investors and developers should not price in a connectivity gain on the basis of an allocation alone. Residents near affected routes should watch for land acquisition notices. The signals to watch are the release of funds during the year, published project timelines, the full list of six projects and any land acquisition announcements.