Delay Continues: Pakistan's Khyber Pakhtunkhwa Bypass Project Stalled Again
Synopsis
Pakistan's federal government has once again postponed a decision on the Khyber Pakhtunkhwa government's financial support for the long-awaited Peshawar Northern Bypass project. With completion deadlines slipping, the future of this critical infrastructure initiative remains uncertain.
Key Takeaways
Federal government delays decision on Rs 4 billion funding.
Peshawar Northern Bypass project has been stalled for 17 years.
Cost of the project has escalated from Rs 3 billion to Rs 27 billion.
Khyber Pakhtunkhwa government emphasizes urgency in project completion.
Delays may impact essential services in the region.
Islamabad, April 21 (NationPress) The federal government of Pakistan has postponed its decision regarding the Khyber Pakhtunkhwa government's proposal to provide Rs 4 billion in bridge financing for the long-stalled Peshawar Northern Bypass project. As this vital infrastructure project continues to encounter challenges, the Centre has signaled that the 30-kilometer road initiative will not meet its completion deadline of June 30 this year, as reported by local media.
Initially designed to complete a ring road around the provincial capital, Peshawar, the Northern Bypass has been stalled for 17 years due to delays in funding from the federal Public Sector Development Programme (PSDP) and other complications.
Last year, the KP government suggested that the federal government facilitate bridge financing to ensure the project’s completion by June 30.
In a statement to the Pakistani daily Dawn, KP finance minister Muzzammil Aslam mentioned that provincial representatives had discussions with officials from the National Highway Authority (NHA) and the Prime Minister’s Inspection Team. They were informed that the Northern Bypass project was not among the 16 priority projects the Centre aimed to complete by the end of the current fiscal year, making June 30 unfeasible.
Aslam noted that while the KP team had secured the chief minister’s endorsement for Rs 4 billion in bridge financing through bank guarantees to complete the project on schedule, the Centre was still “dragging its feet” on this crucial initiative.
“We have expressed our dissatisfaction to the Centre regarding this treatment of the province,” Aslam stated, as quoted by Dawn.
Now in its 17th year of implementation, the project’s cost has surged from Rs 3 billion to Rs 27 billion due to irregular funding from the federal government.
According to documents cited by Dawn, launched in November 2010, the project has undergone three PC-I revisions and has missed multiple deadlines.
Earlier in January, the KP government raised alarms about reduced revenue transfers from the Centre during the first half of 2025-26, jeopardizing its ability to achieve the annual budget surplus target set with the International Monetary Fund (IMF).
The provincial government further cautioned that delays and cuts in federal transfers were straining finances, particularly affecting essential services in the merged districts of the former Federally Administered Tribal Areas.
Point of View
The Khyber Pakhtunkhwa government's proactive financial offer for the Peshawar Northern Bypass project serves as a reminder of the urgency needed in federal responses. The prolonged inaction raises concerns about governance efficiency and the impact on provincial development.
NationPress
2 May 2026
Frequently Asked Questions
What is the current status of the Peshawar Northern Bypass project?
The project remains stalled, with the federal government delaying decisions on financial support despite the Khyber Pakhtunkhwa government's offer of Rs 4 billion.
How long has the Peshawar Northern Bypass project been in development?
The project has been under development for 17 years and has faced numerous funding issues and missed deadlines.
What financial support has the Khyber Pakhtunkhwa government proposed?
The Khyber Pakhtunkhwa government has proposed Rs 4 billion in bridge financing to facilitate the completion of the project.
Why is the project important for Peshawar?
The Northern Bypass is crucial for completing the ring road around Peshawar, improving traffic flow and connectivity in the region.
What are the implications of further delays in the project?
Further delays could strain provincial finances and hinder the delivery of essential services, especially in merged districts.
