The Khyber Pakhtunkhwa government is considering a Rs5.3 billion bridge financing arrangement to ensure the timely completion of the long-delayed Peshawar Northern Bypass project. The move comes amid concerns that inadequate federal funding could further prolong the project and increase costs.
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The over 30-kilometre Northern Bypass, designed to complete the Ring Road around Peshawar, has faced persistent delays for the past 17 years. Officials say the project is in its final stages but still requires more than Rs5 billion to reach completion.
For the current fiscal year, the project received only Rs500 million from the federal Public Sector Development Programme (PSDP). This limited allocation has raised fears of further delays and cost escalations due to staggered releases.
The approximately 30-kilometer-long Peshawar Northern Bypass, which has been delayed for 17 years, is now set for early completion with new measures being implemented.
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Adviser to the KP chief minister on finance, Muzzammil Aslam, said the provincial government is actively considering providing bridge financing from its own resources. He added that the proposal has been shared with Chief Minister Mohammad Sohail Afridi, who supports the move to complete the project without further setbacks.
Under the proposed arrangement, the provincial government would loan the funds to the National Highway Authority (NHA), which would repay the amount later. Mr Aslam said a formal meeting to decide the matter is overdue and expected soon.
Launched in November 2010 with an initial cost of Rs3.07 billion, the project has undergone three PC-I revisions. Its estimated cost has now surged to over Rs27 billion due to repeated delays and insufficient federal funding.
The bypass is divided into multiple packages, several of which have missed original deadlines by years. While some sections are over 80 per cent complete, others have recently had their deadlines extended to late 2025 and early 2026.
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In 2013, the Peshawar High Court also took suo motu notice of the prolonged delay, underscoring the project’s significance for the provincial capital.