Faisalabad-Multan motorway (M-4) with a projected cost of US $24.5 billion, periodic overlay of M-2 and realignment of salt range with cost projected at US $11.8 billion among others and Karachi-Hyderabad motorway (M-9) with projected cost at US $105 million will be constructed with the co-operation of Private Sector under BOT.
Commenting over the Private Sector Participation in Road Projects, official sources stated that the road network in Pakistan has lagged behind its demand for past ten years, thanks to huge fiscal deficits resulting in lack of resource allocation from public sector. Overall this has created a severe shortage of road infrastructure and resultantly cost of business has gone up giving rise to inefficient markets.
Official sources stated that the Government of Pakistan is trying vigorously to promote the concept of Public Private Partnerships in road sector mainly through BOT concept.
Although this concept is not new; but it was not being implemented on large scale in the past. Hence it would help finance major road projects, which could not be undertaken in the past due to lack of resources.
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