The National Highway Authority (NHA) has accumulated losses exceeding Rs2.06 trillion over the past decade, reflecting persistent operational deficits and a rapidly growing debt burden, according to the latest report by the Auditor-General of Pakistan (AGP).

The audit highlights that the NHA has recorded net losses every year from FY2015-16 to FY2024-25, with cumulative financial pressures intensifying due to rising operating expenses, expanding maintenance obligations, and increasing debt servicing costs.

According to the report, the authority posted a post-tax loss of Rs288.54 billion in FY2024-25, following a loss of Rs318.03 billion in the previous fiscal year. The largest annual deficit during the decade was recorded in FY2022-23 at Rs413.45 billion.

Although the NHA's total revenue increased substantially—from Rs28.12 billion in FY2015-16 to Rs122.02 billion in FY2024-25—the improvement was insufficient to offset growing expenditures. Higher toll collections, supported by periodic toll revisions, network expansion, and the rollout of electronic M-Tag systems, contributed significantly to revenue growth. Toll income alone reached Rs64.42 billion during FY2024-25, accounting for more than half of the authority's total revenue.

Despite stronger revenues, the audit found that the NHA continues to face severe liquidity challenges. Current liabilities surged to Rs2.03 trillion, significantly outpacing current assets of Rs215 billion, resulting in a current ratio of just 0.11, indicating limited capacity to meet short-term financial obligations without external support.

The report also showed that the authority's total liabilities increased to approximately Rs3.87 trillion, while its overall debt obligations reached nearly Rs3.76 trillion by the end of FY2024-25. Outstanding long-term loans and maturing debt repayments remain among the largest contributors to the deteriorating financial position.

Key financial performance indicators remained negative throughout the review period. Both return on assets (ROA) and return on capital employed (ROCE) continued to reflect weak operational performance, while the net profit ratio remained deeply in deficit.

The AGP further highlighted significant legal and financial risks facing the authority. Pending land acquisition disputes, contractor claims, and right-of-way lease cases together represent potential liabilities of more than Rs370 billion. The report noted that delays in legal proceedings and weak case management have resulted in adverse arbitration decisions and additional financial exposure.

While the statutory audit issued an unqualified opinion on the financial statements, it included an emphasis on the growing litigation risks and assigned the NHA a high-risk assessment for debt sustainability and legal operations.

The audit underscores the need for comprehensive financial restructuring, stronger revenue generation, improved cost management, and enhanced legal governance to restore the long-term financial sustainability of Pakistan's national highway authority.