In order to realign the Karakoram Highway from Thakot to Raikot as part of the China-Pakistan Economic Corridor (CPEC), Pakistan has asked China for a $1.6 billion soft loan.
China has already given the project the go-ahead, and the Central Development Working Party (CWDP) has now approved a concept clearance for the realignment of the Karakoram Highway from the Thakot to the Raikot project. This will allow the governments of Pakistan and China to finalize the soft loan for the project, according to an official source.
According to official sources, the anticipated cost of realigning the 256 kilometers of the Karakoram Highway between Thakot and Raikot is $1.8 billion, which will be split between China and Pakistan in proportions of 90% and 10%, respectively.
According to the sources, China has agreed to contribute $1.620 billion, and Pakistan’s government will contribute $180 million under the Public Sector Development Program (PSDP).
According to them, the project will be funded by China via soft loans and maximum grants.
With the intention of building three dams on the Indus River, the Karakoram Highway from Thakot to Raikot is being realigned.
According to other sources, 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 Karakoram Highway from Thakot to Raikot.
The grant/loan negotiations with the Chinese side will be finished as soon as the project proposal is approved.
The feasibility assessment and thorough design of the Karakoram Highway (KKH) were largely sponsored by China, which also committed to a G-to-G partnership.
The feasibility study and detailed design for the realignment of 256 kilometers of the Karakoram Highway, which is being moved due to the construction of the Pattan, Dasu, and Diamer Bhasha dams on the River Indus, will be carried out jointly by Pakistan and China, by official sources.
To read our blog on “On the Karakoram highway, the government premiered an ISPR documentary,” click here.