ISLAMABAD (PEN) : The Government of Pakistan has decided to secure $1.6 billion from China to upgrade the Karakoram Highway (KKH). Sources indicate that Pakistan has officially requested this financing, and an agreement between the two nations is expected to be finalized soon.
Officials from Pakistan’s Finance Ministry and the Commission for Planning and Development are currently in discussions with Chinese authorities regarding the project. There’s a possibility that a Chinese firm could partner with a Pakistani company to execute the contract.
Prime Minister Shahbaz Sharif has been briefed on the initiative, which aims to enhance the highway with high-quality bridges, stable slopes, and bypasses to alleviate congestion in busy urban areas. The improvements are set to benefit cargo trucks and passenger carriers, ultimately contributing to the country’s economic growth.
Sources also mention that a high-level delegation may travel to China to sign the agreement once negotiations conclude. Additionally, as part of CPEC Phase II, China is expected to sign four more agreements soon, focusing on IT and agricultural services.