ISLAMABAD -- Pakistan on Friday has signed two different loan agreements with World Bank and Germany for different projects.
Pakistan and World Bank signed loan agreement worth $406.6 million for Khyber Pass Economic Corridor (KPEC) Project. Meanwhile, in other development, Pakistan and Germany signed financing agreement for Hydropower and Renewable Energy phase-II.
Economic Affairs Division Secretary Dr. Syed Pervaiz Abbas signed the project's Loan Agreement worth of $406.6 million on behalf of Government of Pakistan while representative of National Highway Authority (NHA) signed the Project Agreement of the project. Mr. Patchamuthu Illangovan, Country Director signed the agreements on behalf of World Bank.
The project aims to Construct 48Km long 4-Lane, dual carriageway high-speed access controlled motorway, from Peshawar to Torkham. This project will promote economic development and uplift areas adjoining expressway falling in Khyber Pakhtunkhwa Province. The Project envisages the use of PPP and private financing to develop clusters of economic activity, economic zones and expressways. The connecting transport infrastructure and economic zones will provide a strong foundation for private businesses to invest in these zones.
The global integration of South and Central Asia is intertwined with the Khyber Pass and has served as the key node in trade for hundreds of years. The expressway between Peshawar and Kabul through the Khyber Pass represents a section of Corridors 5 and 6 of the Central Asia Regional Economic Cooperation (CAREC). Corridor 5, which runs through Pakistan, has the potential to provide the shortest link between the landlocked countries of Afghanistan, Tajikistan, Uzbekistan and the Arabian Sea. Corridor 6 provides access to Europe, Middle East and Russia. The KPEC will finance Peshawar-Torkham expressway portion of Corridor-5.
The Peshawar-Torkham expressway will reduce transit time and costs for regional and international trade transiting the Khyber Pass and extend till Karachi - Lahore - Islamabad - Peshawar Trans-Pakistan Expressway System. It will form as an integral part of the planned Peshawar - Kabul - Dushanbe Motorway. The improved regional connectivity through this corridor will not only facilitate the commercial traffic and expand economic activities between Pakistan and Afghanistan but also promote private sector development along the corridor. It is expected to generate up to 100,000 new jobs in Khyber...