Govt Considers Revamping Rs. 130 Billion Peshawar-Torkham Motorway Project

The government is considering restructuring the Peshawar Torkham Motorway project after years of delays, repeated bidding failures, and a sharp increase in costs that have pushed the estimated price tag to nearly Rs. 130 billion.

The 47 kilometer motorway is being financed through a $460 million World Bank loan signed in December 2019. The project was originally estimated to cost Rs. 41.44 billion and was expected to become operational under the Khyber Pakhtunkhwa Economic Corridor initiative. However, construction has yet to begin despite the loan reaching its closing date on May 28, 2026.

Under the original plan, the project included a 55 kilometer Southern Link Road connecting the motorway to the N 55 highway at Badhbher and further linking it with the N 5 highway between Chamkani and Jhagra. The motorway was envisioned as part of the larger Peshawar Jalalabad Kabul corridor aimed at improving regional trade connectivity.

According to officials, the Central Development Working Party approved a proposal last month to revise the implementation strategy. The updated plan removes the Southern Link Road and divides the 45 kilometer expressway into three construction packages of about 14.3 kilometers, 15 kilometers, and 15 kilometers.

The Planning Commission has attributed the lack of progress to weak implementation capacity among key stakeholders, including the National Highway Authority, the Ministry of Communications, the Economic Affairs Division, and the World Bank. Officials are currently negotiating an extension of the loan agreement.

Planning Commission documents show that bids for the project were canceled several times after exceeding approved cost estimates and available loan financing. The original estimates were prepared using the National Highway Authority’s 2014 Composite Scheduled Rates, while a detailed design and revised cost estimates based on 2025 rates are still being finalized.