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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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