ISLAMABAD – The World Bank and Pakistan have signed a loan agreement worth$406.6 million for financing the Khyber Pass Economic Corridor (KPEC)project.
Minister for Economic Affairs, Muhammad Hammad Azhar attended the signingceremony of the financing and project agreements.
Secretary, Economic Affairs Division Dr. Syed Pervaiz Abbas signed theproject’s loan agreement on behalf of the government of Pakistan and arepresentative of the National Highway Authority (NHA) signed the projectagreement, while Country Director Patchamuthu Illangovan inked the accordson behalf of World Bank.
The project aims to construct a 48 km long 4-Lane, dual carriagewayhigh-speed access-controlled motorway, from Peshawar to Torkham. Thisproject will promote economic development and uplift areas adjoiningexpressway in Khyber Pakhtunkhwa. The project envisages the use of PPP andprivate financing to develop economic activity, economic zones, andexpressways. The connecting transport infrastructure and economic zoneswill provide a strong foundation for private businesses to invest in.
The global integration of South and Central Asia is intertwined with theKhyber Pass and has served as a key node in trade for hundreds of years.
The expressway between Peshawar and Kabul through the Khyber Passrepresents a section of Corridors 5 and 6 of the Central Asia RegionalEconomic Cooperation (CAREC).
Corridor 5, which runs through Pakistan, has the potential to provide theshortest link between the landlocked countries of Afghanistan, Tajikistan,Uzbekistan, and the Arabian Sea. Corridor 6 provides access to Europe, theMiddle East, and Russia. The KPEC will finance the Peshawar-Torkhamexpressway portion of Corridor-5.
The Peshawar-Torkham expressway will reduce transit time and costs forregional and international trade transiting the Khyber Pass and go fromKarachi – Lahore – Islamabad – Peshawar for the Trans-Pakistan ExpresswaySystem.
It will form an integral part of the planned Peshawar – Kabul – DushanbeMotorway.
The improved regional connectivity through this corridor will not onlyfacilitate the commercial traffic and expand economic activities betweenPakistan and Afghanistan but also promote private sector development alongthe corridor.
It is expected to generate up to 100,000 new jobs in Khyber Pakhtunkhwa.
Minister for Economic Affairs highlighted that the signing of the projectindicated the resolve of the World Bank to support the development agendaof the present government.
The Country Director of World Bank, while appreciating the reforminitiatives of the current government, committed to extending possiblefacilitation and financial support to the government in its efforts topromote economic activities in the country and to put the economy back ontrack.