Economic Coordination Committee approves Rs13 billion for PTV operations and Rs34.6 billion in sovereign guarantees to advance the Sialkot–Kharian Motorway project.
ISLAMABAD: The federal government has approved a Rs13 billion supplementary grant for Pakistan Television Corporation (PTV) to ease its financial strain while also authorizing Rs34.6 billion in sovereign guarantees for the Sialkot–Kharian Motorway project.
The decisions were taken during a virtual meeting of the Economic Coordination Committee (ECC) chaired by Finance Minister Muhammad Aurangzeb. Although the Ministry of Information and Broadcasting had sought Rs20 billion to cover salaries, utility bills, allowances, and other operational expenses, the ECC approved Rs13 billion. The funding will be released in quarterly installments of approximately Rs3.25 billion.
PTV has been facing persistent financial challenges amid declining revenues and rising operating costs. According to the Ministry of Finance, the state broadcaster’s revenue fell by 22 percent during fiscal year 2024-25 to Rs14.3 billion, while it recorded a net loss of Rs639 million. The corporation is now listed among Pakistan’s 20 largest loss-making state-owned enterprises.
The ECC also approved sovereign guarantees worth Rs34.6 billion for the 69-kilometre Sialkot–Kharian Motorway, a project being developed under the Public-Private Partnership (PPP) model by Sialkot Kharian Infrastructure Management (Private) Limited, a subsidiary of the Frontier Works Organization (FWO).
The guarantees include Rs17.4 billion for Capital Viability Gap Funding, Rs10.3 billion to support commercial borrowing, and nearly Rs7 billion for Operational Viability Gap Funding. The committee also approved Rs27.62 billion in fresh sovereign guarantees and the rollover of Rs6.94 billion in existing funding to help the project achieve financial close under its revised financing plan.
The motorway’s financial framework was restructured earlier this year due to rising construction costs, inflation, higher interest rates, and design changes. Under the revised agreement, the concession period has been extended from 25 to 29 years. Initial toll rates are expected to begin at Rs4.1 per kilometre for cars, with higher rates for buses and heavy commercial vehicles.
The Ministry of Finance estimates that sovereign guarantees totaling Rs683 billion will be issued between April 2026 and June 2027 for public sector projects and state-owned enterprises. Pakistan’s outstanding sovereign guarantees currently stand at Rs4.4 trillion and are projected to exceed Rs5 trillion by June next year.
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