ISLAMABAD: Pakistan's National Highway Authority (NHA) will have accumulated losses of Rs2.074 trillion by June 2025. Half of these losses, about Rs1 trillion, piled up in just the last three years. The NHA holds the largest outstanding loans among state-owned enterprises, standing near Rs3.1 trillion. This debt grows by Rs300 billion every year. The NHA has the highest financing cost of Rs210 billion in FY25. Toll revenues doubled to Rs64.4 billion but still fall short of covering debt costs. This creates heavy fiscal dependence on the government. The federal budget faces risk as the government guarantees these loans. According to the Central Monitoring Unit (CMU) of the Ministry of Finance, the NHA operates on a structural deficit, relying heavily on budget support. Its financing cost rose from Rs182 billion last year to Rs193.5 billion in FY25. Depreciation expenses are high at Rs133.8 billion, reflecting large assets and maintenance needs. The NHA’s net assets slightly dropped from Rs5.84 trillion in FY23 to Rs5.83 trillion in FY25. Meanwhile, liabilities increased from Rs3.27 trillion in FY23 to Rs3.88 trillion in FY25. Total equity also fell from Rs2.57 trillion to Rs1.95 trillion during this period. Revenue grew with operating income rising from Rs42.4 billion in FY24 to Rs83.1 billion in FY25, led by toll revenue. Yet total income of Rs119.7 billion is overshadowed by expenses of Rs408.1 billion. The deficit before taxes reached Rs292.98 billion and Rs294.86 billion after tax. The NHA’s performance shows its importance but exposes fiscal weaknesses. The CMU recommends diversifying funding by attracting infrastructure bonds and expanding public-private partnerships (PPP). Renegotiating loan terms to lower rates or convert debt to equity could help ease financial pressure. The CMU warns that without reforms, the NHA’s growing debt poses a major credit risk for Pakistan.