ISLAMABAD: As part of the China-Pakistan Economic Corridor (CPEC), Pakistan had asked China for a $1.6 billion soft credit to realign the Karakorum Highway from Thakot to Raikot.
As per the sources, a concept clearance for the realignment of the Karakorum Highway from the Thakot to the Raikot project has now been approved by the Central Development Working Party (CWDP).
Furthermore, this approval would allow the governments of Pakistan and China to finalize the soft loan for the project as China has already given its approval in this regard.
According to official sources, the anticipated cost of realigning the 256 kilometers of the Karakorum Highway between Thakot and Raikot is $1.8 billion, which will be split between China and Pakistan in proportions of 90% and 10%, respectively.
Besides, China has agreed to provide $1.620 billion, while Pakistan’s government would contribute $180 million under the Public Sector Development Programme (PSDP).
It is to note that the project would be funded by China via soft loans and maximum grants as the grant talks with the Chinese side will also be accomplished as soon as the project proposal is approved.
It was also revealed that the Planning Commission of Pakistan is in the process of giving the Ministry of Communications approval for the concept clearance for the project to realign the Karakorum Highway from Thakot to Raikot.
Additionally, the feasibility assessment and thorough design of the Karakoram Highway were largely sponsored by China, which also committed to a G-to-G partnership.
As per the sources, Pakistan and China would work together to complete the feasibility study and detailed design for the realignment of the 256 kilometers of the Karakorum Highway with the priority to build the Pattan, Dasu, and Diamer Bhasha dams on the River Indus.
