ISLAMABAD: The Senate Standing Committee on Planning, Development and Special Initiatives has directed the National Highway Authority (NHA) to present a concrete debt restructuring plan within ten days, citing concerns over mounting debts and the use of funds for infrastructure projects. During a meeting at the Parliament House chaired by Senator Quratulain Marri, the Committee also reviewed the implementation of the Prime Minister’s National Health Programme.

According to Senate of Pakistan, the Committee scrutinized the Public Sector Development Programme (PSDP)-funded infrastructure projects and Cash Development Loans extended to the NHA. The Committee expressed serious concern over the NHA’s growing debt burden and emphasized the need for financing roads constructed as public service obligations through grants rather than loans. NHA officials briefed the Committee that the debt portfolio includes principal liabilities and accumulated interest, resulting in significant PSDP deductions for debt servicing.

The Committee was informed of four restructuring initiatives undertaken since 2018, with the current proposal seeking capitalization of outstanding mark-up on loans. The Committee noted the lack of progress on converting non-commercial projects into grants as directed by the Federal Cabinet in January 2021. The NHA was instructed to submit a comprehensive report on debt restructuring, project classification, and financing mechanisms for ongoing and future projects.

The Committee also reviewed the progress of major motorway projects, including the Hyderabad-Sukkur (M-6) Motorway and other significant infrastructure endeavors. Additionally, the Committee evaluated the implementation of the Prime Minister’s National Health Programme, which aims to provide universal health coverage across various regions, with ongoing consultations with the Government of Sindh for province-wide implementation. The Committee emphasized the importance of strengthening primary healthcare and improving public hospitals to enhance health outcomes.

The directives for the NHA and the Ministry of National Health Services, Regulations and Coordination aim to ensure sustainable progress on infrastructure projects and health programme implementation.