Azerbaijan has offered Pakistan a $1 billion loan to support the construction of the Sukkur-Hyderabad Motorway (M-6), though the proposal has stirred debate among Pakistani government departments. The loan is part of a larger request by Prime Minister Shehbaz Sharif, who sought $1.8 billion for two key infrastructure projects during his recent visit to Azerbaijan.
The projects include the $1.2 billion Sukkur-Hyderabad Motorway and a new $600 million Hyderabad-Karachi Motorway (M-9) on a different route. Azerbaijan proposed two options: either deposit the funds through its State Oil Fund into Pakistan’s central bank, or partner with the Islamic Development Bank to directly finance the motorway.
Pakistan’s National Highway Authority (NHA) is overseeing the projects and recently enlisted American firm AT Kearney to carry out a feasibility study for the Sukkur-Hyderabad section. Despite the financial offer from Azerbaijan, there is no consensus within the Pakistani government on how to proceed. The Finance Ministry is reportedly hesitant to accept a cash deposit loan for road construction, preferring that the NHA directly secure funding from Azerbaijan.
Meanwhile, the Sukkur-Hyderabad Motorway remains critical as it connects key trade routes across the country. The government is also keen to build the M-9 Motorway to enhance connectivity between Karachi and Hyderabad, a project expected to cost over $600 million. Despite interest from foreign investors, Pakistan’s economic instability continues to hamper efforts to attract new international funding.
The final decision on these projects, including Azerbaijan’s involvement, is expected in the coming weeks, as officials continue to weigh their options.
Read next: Strict safety measures announced to address surge in traffic accidents in Karachi
