ISLAMABAD: The cash-strapped government, already facing an acute economic crisis due to the Gulf war, may lose a $360 million loan from the Asian Development Bank (ADB) allocated to an international highway project, as April 5 is the disbursement deadline.

After addressing all deficiencies and flaws in the award process of the Central Asian Regional Economic Corridor (Carec) Tranche-III project, the decision now rests with Prime Minister Shehbaz Sharif, who must determine whether the project should be executed by the National Highway Authority (NHA).

When contacted, a senior official of the NHA told Dawn that the authority was in a fix and was waiting for the PM’s order on the matter, expected to be issued before April 5 (Sunday).

The official said the premier had halted the contract awarding process after some parliamentary standing committees raised reservations. However, the NHA has satisfied all the committees by addressing all flaws and deficiencies, after which the ADB, the Executive Committee of the National Economic Council (Ecnec), and even the high court have given the green light for the NHA to start the international project.

Fate of $360m Carec project hangs on PM’s nod

Due to the US-Israel conflict with Iran that triggered a global oil crisis, Pakistan’s annual import bill has already increased by $1.5 billion.

The Central Asian Regional Economic Cooperation Programme is an ADB-supported initiative established in 1997 to promote economic cooperation among countries in the Central Asian region. Tranches I, II, and III road projects are either underway or completed. Tranche III includes four lots: Lot 1 (58km road from Rajanpur to Jampur), Lot 2 (64km from Jampur to D.G. Khan), Lot 3 (112km from D.G. Khan to Tibbi Qaisrani), and Lot 4 (96km from Tibbi Qaisrani to DI Khan). Participating countries are Afghanistan, Azerbaijan, China, Georgia, Kazakhstan, Kyrgyz Republic, Mongolia, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan.

Last month, the ADB granted a final one-month extension for the disbursement of a $360m loan for the Carec Tranche-III project, which has already been delayed by around a year due to issues with the NHA.

The ADB also cautioned the government in its letter that April 5 will be the final and non-extendable deadline, stating: “Within the same period, the NHA is also requested to provide any new and material information justifying the delay for ADB’s review. In the absence of such information, or if the contract is not awarded within the extended bid validity period, the matter may need to be assessed as a potential non-compliance case, which could affect the financing of the contract and any subsequent procurement actions related to this package,” the ADB said.

The NHA official said the Supreme Court has dismissed a petition by the Public Procurement Regulatory Authority (PPRA) challenging the bidding process under which a joint venture of three firms — NXCC, Dynamic Constructor and Rustam Associates — was declared the successful bidder. The SC, while disposing of the PPRA petition, endorsed the Islamabad High Court’s findings regarding the procurement process conducted by the NHA for the N-55 project.

It held that the NHA had properly verified the bids submitted by the three-firm joint venture and its credentials, and that no further verification was necessary.

The official said Ecnec has already approved the bids submitted by the joint venture of NXCC, Dynamic Constructor, and Rustam Associates.

The ADB has also confirmed that it has no objection to awarding the contracts to the lowest bidder for all four lots.

Earlier, the IHC had rejected PPRA’s petition against the Rs172 billion Carec Tranche-III award to the joint venture. In its verdict, the court warned that the regulator’s recent decisions “may also lead to the refusal of the finance facility agreed by the ADB,” and declared the petitions infructuous.

Published in Dawn, April 4th, 2026