The National Highway Authority (NHA) generated a net operating income of 43.612 billion PKR for the fiscal year 2024-25, directly challenging recent reports that have labelled the state-owned enterprise as loss-making.
According to official financial statement today, the widely cited 288.541 billion PKR “accounting deficit” is a result of non-cash entries, primarily 133.771 billion PKR in depreciation and 193.488 billion PKR in finance costs, which do not reflect an actual cash outflow or operational shortfall.
An analysis of the Authority”s audited finances reveals total revenues of 122.021 billion PKR against operating expenditures of 78.409 billion PKR, confirming a cash-positive operational status. This financial self-sufficiency is a core aspect of its current model, as the NHA no longer receives any budgetary support from the government for its administrative expenses, funding them entirely from its own generated income.
This fiscal independence extends to its workforce commitments. The NHA does not rely on the federal exchequer for employee post-retirement benefits, having established its own pension and retirement funds. These funds are managed by an independent Board of Trustees and are audited in line with prevailing standards.
Furthermore, the Authority successfully finances the maintenance of the country”s entire highway network from its operational earnings, despite 50% of the network operating as a non-revenue generating Public Service Obligation. This underscores the financial resilience of its commercially viable routes.
Under the direction of Federal Minister for Communications Abdul Aleem Khan, the NHA is undergoing a significant transformation to enhance efficiency. Recent milestones include a 63% growth in operating income and a 31% reduction in maintenance-related outlays. Revenue collection has also been modernised, with 81% of tolling now processed via M-Tag as of January 2025.
To secure its long-term viability, the NHA is actively restructuring its debt through the Asian Development Bank-funded SOE Transformation Programme. This initiative involves rationalising its debt by classifying projects according to their commercial potential, a measure intended to reinforce the organisation”s financially sound and sustainable operational footing.