The federal government has decided in principle to move forward with the development of the Motorway (M-13) project, which is estimated to cost around Rs. 205 billion. The project is expected to improve road connectivity and reduce travel time between major cities in Punjab.
The decision was made during a meeting of the Public Private Partnership Authority (P3A) Board of Directors. The meeting was chaired virtually by Adviser to the Prime Minister on Privatization Muhammad Ali. During the meeting, officials discussed the future of the strategically important motorway project and agreed to proceed through a negotiated procurement process.
The 117-kilometer Motorway (M-13) will connect Kharian and Rawalpindi. According to officials, the new route will shorten the distance between Lahore and Rawalpindi by nearly 100 kilometers. It is also expected to reduce travel time by more than one hour compared to the existing M-2 Motorway.
The National Highway Authority (NHA) informed the board that the Frontier Works Organisation (FWO) is already working on neighboring motorway sections. These include the Lahore-Sialkot and Sialkot-Kharian motorway routes. Because of its existing presence in the area, FWO can begin work on the project without significant delays.
Officials stated that Section 20 of the P3A Act, 2017 allows negotiated procurement in specific situations. Based on this provision, the proposal will now be sent to the federal cabinet for final approval before work can formally proceed.
The Executive Committee of the National Economic Council (ECNEC) approved the project in April this year. At that time, the estimated project cost was Rs. 203.32 billion.
The Motorway (M-13) will be developed under the Build-Operate-Transfer (BOT) model. Under this arrangement, the developer will build and operate the motorway for a specified period before transferring it to the government.
Officials said that key commercial terms are still being finalized. These include financing arrangements, toll collection mechanisms, concession duration, and risk-sharing responsibilities. All agreements will be prepared according to the approved transaction framework and relevant legal requirements.
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Once completed, the Motorway (M-13) is expected to strengthen regional connectivity, support economic activity, and provide a faster travel option for commuters and transport operators.
