Minister for Economic Affairs, Mr. Muhammad Hammad Azhar, witnessed the signing ceremony of financing and project agreements of Khyber Pass Economic Corridor Project (KPEC) worth US$ 406.6 million with the World Bank, held today, in Economic Affairs Division.

Islamabad December 13, 2019 – Minister for Economic Affairs, Mr. Muhammad Hammad Azhar, witnessed the signing ceremony of financing and project agreements of Khyber Pass Economic Corridor Project (KPEC) worth US$ 406.6 million with the World Bank, held today, in Economic Affairs Division.

The project aims to Construct 48Km long 4-Lane, dual carriageway high-speed access controlled motorway, from Peshawar to Torkham and to promote economic development and uplift of areas adjoining to expressway falling in Khyber Pakhtunkhwa Province. The Project envisages the use of PPP and private financing to develop clusters of economic activity, possible economic zones. Developing Expressway and the connecting transport infrastructure including urban development, together with the envisioned investment in the public infrastructure and utilities of the economic zones 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, and Uzbekistan and the Arabian sea. Corridor 6 provides access to Europe, the Middle East and Russia.  The KPEC will finance the 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 the Karachi – Lahore – Islamabad – Peshawar Trans-Pakistan Expressway System and form an integral part of the planned Peshawar – Kabul – Dushanbe Motorway. The improved regional connectivity through this corridor will not only facilite the commercial traffic and expand economic activitities between Pakistan and Afghanistan but also promote private sector development along the corridor.  It is expected to generate upto 100,000 new jobs in Khyber Pakhtunkhwa Province.