Press Release
VIS Reaffirms Entity Ratings of Malir Expressway Limited
Karachi, February 06, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed entity ratings of Malir Expressway Limited ('MEL' or ‘Company') at ‘A-/A2’ (Single A Minus/A Two). Medium to long term rating of ‘A-’ indicates good credit quality; protection factors are adequate. Risk factors may vary with possible changes in the economy. Short term rating of ‘A2’ indicates good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned ratings remains ‘Stable.’ Previous rating action was announced on November 20, 2024.
MEL is a public limited, unlisted company incorporated on March 22, 2020 under the Companies Act, 2017. The Company was established for the development of the Malir Expressway Project (Shahrah-e-Bhutto) Project, a six-lane dual carriageway spanning approximately 39 km along the Malir Riverbed, connecting Jam Sadiq Bridge to Kathore Bridge near M9 Motorway, with the objective of providing an alternate north–south traffic corridor for Karachi. The project is being implemented under a Design, Finance, Build, Operate, Maintain and Transfer (DFBOT) public–private partnership (PPP) arrangement with the Government of Sindh (GoS). Construction activities commenced in May 2022. The project’s original scheduled completion date of November 2024 has since been revised to March 31, 2026 following changes in the design and scope of work of the Expressway.
The assigned rating reflects the Company’s strong sponsor profile and the strategic importance of the project under the PPP mode with the GoS, which provides policy support and funding comfort. The Company benefits from experienced private sector sponsors with proven execution capabilities and an established governance framework led by technically qualified management. Progress on construction has been steady, with Phase -I of the corridor (Approximately 19 km up to Quaidabad Interchange) already completed and operational, allowing early visibility on toll revenue generation. The Concession Agreement provides commitment from the GoS to cover cost overruns during the construction phase and meet revenue shortfall during operational phase. Provisions for performance securities ensure adherence to quality and operational standards. Additionally, toll rate escalation and a cost-adjustment mechanism by GoS enhance financial stability going forward. Execution risk persists on the remaining segment, but material supply constraints and key approvals have largely been resolved, supporting expectation of completion within the revised timeline. Ratings remain sensitive to timely completion of the project and continued support of GoS as built in the Concession Agreement.
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For further information on this rating announcement, please contact at 021-35311861-64 or email at for @vis.com.pk
Applicable Rating Criteria: Corporates
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
Toll Road
https://docs.vis.com.pk/docs/Toll_Roads_2025.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf