News Detail
Event Title: Senator Quratulain Marri, Chairperson Senate Standing Committee on Planning, Development and Special Initiatives Presiding over a Meeting of The Committee at Parliament House Islamabad.
Event Date: 2026-07-08
Senate Standing Committee on Planning, Development and Special Initiatives Directs NHA to Present Concrete Debt Restructuring Plan, Reviews Prime Minister's National Health Programme
A meeting of the Senate Standing Committee on Planning, Development and Special Initiatives was held today at Parliament House, Islamabad, under the Chairpersonship of Senator Quratulain Marri. The meeting was attended by Senators Jam Saifullah Khan, Shahadat Awan, Dr. Afnan Ullah Khan, and Saadia Abbasi. Senior officials from the Ministry of Planning, Development and Special Initiatives, the Ministry of Finance, the Ministry of Communications, the National Highway Authority (NHA), the Ministry of National Health Services, Regulations and Coordination, and other relevant stakeholders were also present.
At the outset, the agenda item regarding the briefing by the Secretary, Ministry of Planning, Development and Special Initiatives, on the Resolution moved by Senator Muhammad Talha Mahmood was deferred and will be taken up in the next meeting. The Committee reviewed PSDP-funded infrastructure projects, including Cash Development Loans (CDL) extended to the National Highway Authority (NHA), as well as the implementation of the Prime Minister's National Health Programme under the PSDP. Expressing serious concern over NHA's mounting debt burden, the Committee questioned the continued reliance on loans for public infrastructure projects that do not generate commercial returns. The Chairperson observed that roads constructed as a public service obligation should preferably be financed through grants rather than loans. The Committee took up the matter after noting that although PSDP allocates funds for road infrastructure projects, a substantial portion is deducted for debt servicing, particularly interest payments, resulting in delays in the execution of road projects.
Briefing the Committee, NHA officials informed that infrastructure projects are financed through Cash Development Loans (CDL) and foreign relent loans routed through the Economic Affairs Division. The Committee was informed that NHA's debt portfolio comprises both principal liabilities and accumulated interest, while substantial deductions have been made from PSDP allocations for debt servicing over the years, with a significant portion utilized for interest payments.
Moreover, the Committee was informed that NHA has undertaken four restructuring initiatives since 2018. Officials stated that the current proposal seeks capitalization of outstanding mark-up on CDL and foreign loans until completion of the ADB-supported State-Owned Enterprise Transformation Programme, while the Finance Division has linked any moratorium to completion of debt mapping, third-party evaluation of commercially feasible projects, restructuring proposals, and approval by the competent forum before 31 December 2026.
The Committee observed that despite the Federal Cabinet's 20 January 2021 decision on preparing a comprehensive business plan and converting non-commercial projects into grants, little progress had been made. The Chairperson directed NHA to submit within ten days a comprehensive debt restructuring proposal, the implementation status of Cabinet and ECC decisions, project classification, and the future financing mechanism.
NHA officials informed the Committee that toll revenue currently amounts to approximately Rs. 120 billion annually, which is utilized for road maintenance, salaries and operational expenses. Officials explained that only motorways and commercially viable corridors generate sustainable revenue, whereas roads in remote and mountainous regions including Gilgit-Baltistan, Chitral, Kashmir and other less-developed areas are constructed as public service obligations and cannot recover their costs through toll collection.
Thereafter, the Committee also reviewed the progress of major motorway projects. NHA informed that work on the Hyderabad-Sukkur (M-6) Motorway has been divided into five segments, with financing arrangements completed for two segments and physical work expected to commence on additional sections by September 2026. Officials also briefed the Committee on the progress of the Sambrial-Kharian Motorway, the Rawalpindi Ring Road, improvements on N-55, and other ongoing projects. The Committee directed NHA to present a comprehensive progress report on all major motorway and highway projects, including financing arrangements, implementation timelines, and the status of commercial and foreign-funded loans, in its next meeting.
The Committee subsequently reviewed the implementation of the Prime Minister's National Health Programme. Briefing the Committee, officials of the Ministry of National Health Services informed that the programme currently provides Universal Health Coverage (UHC) in ICT, Azad Jammu and Kashmir, Gilgit-Baltistan, Punjab, Khyber Pakhtunkhwa and Balochistan, while consultations are continuing with the Government of Sindh regarding province-wide implementation. Officials stated that under the 18th Constitutional Amendment, provinces are responsible for financing health services for their respective populations, while the Federal Government continues to support ICT, AJK and GB.
Officials informed the committee that the programme provides annual inpatient health coverage of up to Rs. 1 million per family through a network of more than 600 public and private hospitals under a competitive third-party insurance model implemented through State Life Insurance Corporation. Officials stated that catastrophic illnesses, including cardiac diseases, cancer treatment, dialysis, organ failure, burns, trauma and other major procedures, are covered under the scheme. They further informed that while Pakistan's annual health budget exceeds Rs. 1.154 billion, nationwide universal inpatient coverage can be achieved at an estimated annual cost of approximately Rs. 211 billion, with expected hospital claims of around Rs. 160 billion.
Additionally, the Committee emphasized that strengthening primary healthcare remains essential to reducing hospitalization costs and improving overall health outcomes. Members questioned the continued reliance on third-party insurance mechanisms and stressed the need to improve public hospitals alongside health financing reforms.
After detailed deliberations, the Committee directed the National Highway Authority to submit within ten days a comprehensive report on implementation of previous Cabinet decisions, project classification, debt restructuring proposals, and financing mechanisms for ongoing and future infrastructure projects. The Committee also directed the Ministry of National Health Services, Regulations and Coordination to continue consultations with provincial governments to strengthen universal health coverage, improve primary healthcare integration, and ensure sustainable implementation of the Prime Minister's National Health Programme.