Pakistan approached China for the provision $1.6 billion soft loan for the realignment of the Karakorum Highway from Thakot to Raikot under the umbrella of the China-Pakistan Economic Corridor (CPEC)
China has already given a green signal in this regard and now a concept clearance for the realignment of the Karakorum Highway from Thakot to Raikot project has been approved by the Central Development Working Party (CWDP) which will enable the governments of Pakistan and China to finalize the soft loan for the project, an official source told.
According to sources estimated cost of the realignment of 256 kilometers of Karakorum Highway from Thakot to Raikot is $1.8 billion which will be shared with a ratio of 90 percent and 10 percent respectively by China and Pakistan.
China has agreed to provide $1.620 billion, while the government of Pakistan will furnish $180 million through the Public Sector Development Programme (PSDP).
The realignment of the Karakorum Highway from Thakot to Raikot is being planned in view of the construction of three dams on the river Indus.
The Ministry of Communications is in the process of getting a nod from the Planning Commission of Pakistan regarding the concept clearance for the realignment of the Karakorum Highway from Thakot to Raikot project, said the sources further. As soon as the project concept gets a green light, the grant/loan negotiations with the Chinese side will be finalized.