The National Highway Authority utilised Rs124.31 billion, or around 56% of its allocated development budget, during the first half of FY2025–26. The ongoing investment in Pakistan’s highway infrastructure could have wider implications for connectivity, economic activity and future real estate development.
NHA Utilises 56% of Development Budget in First Half of FY26
Pakistan’s road infrastructure development continues to receive significant public investment, with the National Highway Authority (NHA) utilising around 56% of its development budget during the first half of the financial year 2025–26.
According to reported figures, the NHA received Rs223.28 billion under the Public Sector Development Programme (PSDP) for 71 infrastructure projects. From July 2025 to January 2026, the authority utilised Rs124.31 billion, representing approximately 56% of its allocated development budget.
The scale of this spending reflects the continued focus on improving Pakistan’s road and highway network, with major infrastructure projects being developed across different regions of the country.
Major Investment in N-25 Balochistan Expressway
A significant portion of the NHA’s development spending was directed towards projects associated with the N-25 Balochistan Expressway.
Around Rs100 billion was allocated for three projects, of which Rs55.13 billion had been utilised by January 2026.
The N-25 is an important transportation corridor, connecting different parts of Balochistan and supporting the movement of people and goods. Continued investment in major routes such as this can contribute to improved regional connectivity and economic activity.
Progress Across Major National Projects
The NHA’s development budget is being distributed among several categories of infrastructure projects.
For 14 essential rupee-cover projects, Rs23.93 billion had been utilised against an allocation of Rs61.57 billion. Meanwhile, 12 critical national projects received Rs20.46 billion in spending from an allocated Rs26.93 billion.
Projects approaching completion recorded particularly high utilisation. Around Rs8 billion of the Rs9 billion allocated for 10 sub-completed projects had been spent, while Rs12.11 billion of the Rs13.6 billion allocated for eight projects close to completion had also been utilised.
However, progress on three Build-Operate-Transfer (BOT) projects remained limited, with only Rs81 million utilised against the Rs6 billion allocated.
Pakistan’s Growing Highway Infrastructure
The NHA is currently overseeing development projects with an estimated combined value of around Rs3.4 trillion. Approximately Rs2.7 trillion is expected to carry forward into FY2026–27.
Among the major projects included in this broader development portfolio is the $1.8 billion Sukkur–Hyderabad M-6 Motorway project.
Large-scale projects such as the M-6 demonstrate that Pakistan’s infrastructure development is a long-term process. Major highways and motorways require substantial investment and can take several years to reach completion.
How Infrastructure Development Can Affect Real Estate
Highway development is important not only for transportation but also for the broader growth of surrounding areas.
Improved road connectivity can make locations more accessible to residents, businesses, investors and industries. As accessibility improves, areas connected to major highways may experience increased commercial activity and gradual development of residential, commercial and industrial projects.
For the real estate sector, connectivity is therefore an important factor when assessing the long-term potential of a location.
However, a new road or motorway should not automatically be considered a guarantee of property price growth. The actual impact depends on several factors, including the completion of the infrastructure project, accessibility, population growth, employment opportunities, utilities, legal approvals and genuine market demand.
What Property Investors Should Consider
For property investors, infrastructure development can be an important indicator to monitor, but it should always be considered alongside other fundamentals.
Before investing in an area based on a planned or ongoing road project, buyers should examine the actual construction status, relevant approvals, accessibility, availability of utilities, surrounding development and the level of genuine residential or commercial demand.
The difference between an announced project and a completed infrastructure connection can be significant.
The Bigger Picture for Pakistan’s Real Estate Market
The NHA’s utilisation of Rs124.31 billion during the first half of FY2025–26 highlights the scale of ongoing investment in Pakistan’s road infrastructure.
As major highways and motorways progress, improved connectivity can support trade, logistics, business activity and urban expansion. Over time, these factors can also influence the development of surrounding real estate markets.
For property buyers and investors, keeping track of infrastructure development can therefore provide useful context when evaluating the future potential of different locations.
Final Thoughts
Pakistan’s highway development programme represents a long-term investment in the country’s connectivity and economic infrastructure. The NHA’s 56% utilisation of its FY2025–26 development allocation during the first half of the fiscal year demonstrates the scale of work currently underway.
For the real estate sector, the important consideration is not simply whether a highway is being planned, but how that infrastructure ultimately connects communities, businesses and economic activity.
At Deal One Real Estate, we believe informed property decisions require looking beyond current prices and considering the infrastructure, accessibility and development taking shape around a location.