NHA remains cash positive with around Rs44bn operating income

February 16, 2026 (MLN): The National Highway Authority (NHA) reported a net operating income of Rs43.61 billion for FY2024-25, indicated that its core operations remained cash-positive despite a reported accounting deficit of Rs288.54bn in its audited financial statements.

The Authority generated Rs122.02bn in revenue during the year, while operating expenditures stood at Rs78.41bn, resulting in a robust operating surplus, according to the press release. 

The reported deficit largely stems from non-cash accounting entries, including Rs133.77bn in depreciation and Rs193.49bn in finance costs, which do not involve immediate cash outflows.

The figures come amid recent reports categorizing the NHA as a loss-making state-owned enterprise (SOE).

However, the financial breakdown indicates that the negative bottom line shows accounting treatment rather than operational cash losses.

Depreciation charges relate to the extensive national highway infrastructure under the Authority’s management, while finance costs are linked to long-term borrowings used for infrastructure development.

The NHA also stated that it does not receive federal budgetary allocations for its administrative expenses and manages these costs through internally generated revenue.

It further maintains independent pension and retirement funds for employees, overseen by a Board of Trustees and audited under applicable standards.

Around 50% of the NHA’s network functions as a non-revenue-generating public service obligation.

Despite this, the Authority finances maintenance of the entire network through its own income streams.

Operational indicators show recent improvements. Operating income increased 63%, rising from Rs66.8bn to Rs108.27bn, while maintenance related expenditures declined by 31%. Toll revenue collection has also shifted significantly toward digital payments, with 81% of tolling conducted via M-Tag as of January 2025.

The Authority is currently undergoing debt rationalization under an Asian Development Bank-supported SOE transformation programme, classifying projects based on commercial viability to improve long-term financial sustainability.

The latest financial data suggests that while accounting losses persist due to depreciation and financing costs, the NHA’s operational cash flows remain positive, a key distinction in assessing the financial health of one of Pakistan’s largest infrastructure entities.

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