Pakistan gets $1.6bn financing commitment from China for Karakoram Highway upgrade
The Government of Pakistan has secured a $1.6 billion financing commitment from China for the upgrade of the Karakoram Highway (KKH), a major project aimed at enhancing trade routes and connectivity.
As per reports, Pakistan formally requested Chinese funding for the project, with an agreement expected soon. Negotiations are ongoing between Pakistan’s Finance Ministry, the Planning and Development Commission, and Chinese officials.
Reports indicate that a Chinese firm may partner with a Pakistani company for the construction, which includes building high-quality bridges, stabilizing slopes, and creating bypasses around densely populated areas.
Prime Minister Shahbaz Sharif was briefed on the project, which is anticipated to facilitate smoother cargo transport, improve passenger travel, and contribute to broader economic growth.
A high-level Pakistani delegation could soon visit China to finalize the agreement.
As part of CPEC Phase-II, China is expected to sign four additional agreements with Pakistan, covering IT and agricultural services.