LAHORE: The Rs146 billion Indus Highway (N-55) expansion project is facing political interference that could derail concessional financing from the Asian Development Bank (ADB) and undermine Pakistan’s credibility with international partners.
The project, which was awarded to a consortium led by a Chinese firm after clearance from the ADB, is now being questioned by rival bidders and lawmakers. Imdadullah Khan, spokesperson for the Chinese-led consortium, told journalists that after failing to win the contract through open competition, losing bidders backed by parliamentarians are resorting to political manoeuvring. He claimed that two firms, now supported by a politician, are pressuring the consortium to surrender one or two lots of the project while simultaneously attempting to malign the procurement process.
“This is a contract that has already been vetted and approved by the ADB and the NHA, and inaugurated by the prime minister in February 2025. Any effort to reopen or redistribute it is nothing but political interference.”
Khan stressed that the bidding process was conducted strictly under international guidelines. Nearly 20 national and international firms submitted offers when the process began in December 2023. Bids were received on November 26, 2024, and, after a nine-month evaluation involving the ADB and the NHA, the consortium of Ningxia Communications Construction (China), Rustam Associates, and Dynamic Constructors was declared the lowest evaluated bidder. Their offer was Rs13.2 billion lower than the nearest competitor and almost 20 per cent below the official engineer’s estimate, based on updated CSR-24 rates.
“The procurement was one of the most transparent and competitive exercises in recent years,” Khan said. “We faced nearly two dozen strong bidders from Pakistan and abroad. Our win was not only legitimate but also in the best financial interest of the government.”
The project covers 330 kms of dual carriageway between Rajanpur and Dera Ismail Khan, including eleven new bypasses to divert heavy traffic away from congested towns. Six bypasses will be built between Rajanpur and Dera Ghazi Khan at Rajanpur, Fazilpur, Muhammad Pur, Jampur, Mana Ahmadani, and Kot Chatta while five will be constructed between DG Khan and DI Khan at Shah Sadruddin, Kala, Shadan Lound, and Ramak.
“The bypasses are not cosmetic additions,” Khan explained. “They are critical for easing urban congestion, reducing accidents, and ensuring smooth flow of goods along one of Pakistan’s most important trade routes.”
The spokesperson warned that political interference could lead to withdrawal of ADB financing, delays that would push up costs, and reputation damage for Pakistan. “This is not just another road project,” Khan said. “It is a defining moment for Pakistan’s infrastructure. The expansion of the Indus Highway will ease congestion, reduce accidents, and strengthen regional trade links. But it can only succeed if it is allowed to proceed as awarded, without vested interests sabotaging the process.”
At the groundbreaking ceremony earlier this year, Prime Minister Shehbaz Sharif has set a two-year completion target. The consortium says it is fully mobilized to meet that deadline. “We are ready to deliver. The only obstacle is political meddling, which must stop if Pakistan is serious about progress,” Khan said.