The government has countered recent reports labelling The National Highway Authority (NHA) a loss-making entity, saying financial data shows a Net Operating Income of Rs43.612 billion for the fiscal year 2024-25, according to a government press release.
The Authority’s audited figures indicate it generated Rs122.021 billion in revenue against Rs78.409 billion in operating expenditures, resulting in the positive operating outcome, the statement said.
The release addresses media coverage highlighting a Rs288.541 billion accounting deficit, asserting that the headline figure largely reflects non-cash entries — specifically Rs133.771 billion in depreciation and Rs193.488 billion in finance costs — which do not involve actual cash outflows.
“The NHA has evolved into a financially independent entity that no longer imposes a burden on national fiscal resources,” the press release said, noting that the authority does not receive any budgetary allocation for administrative expensesand funds these entirely from its own resources.
It added that unlike many organisations, NHA also does not rely on the federal government for employee post-retirement benefits, maintaining independent pension and retirement funds audited under prevailing standards.
The statement highlighted that around 50 percent of the NHA network operates as a non-revenue generating Public Service Obligation but asserted that the authority still successfully finances maintenance of the entire network through internally generated income.
To bolster long-term sustainability, the press note said NHA is undergoing operational efficiency and debt restructuring, reporting milestones such as a 63 percent growth in operating income and a 31 percent reduction in maintenance costs. It also noted that 81 percent of tolling is now conducted via M-Tag as of January 2025, signifying greater digital revenue collection.
The press release said these measures, part of the ADB-funded SOE Transformation Programme, reflect the authority’s strengthened financial position and cash-positive operations despite the differing impression created by accounting conventions.
The post NHA says it posted Rs43.6 billion operating surplus in FY2024-25 appeared first on Profit by Pakistan Today.