Pakistan Secures $2 Billion Deal with China for Karakoram Highway Revamp

ECC Approves $2 Billion Contract with China for Karakoram Highway Upgrade under CPEC Phase II

Pakistan Secures $2 Billion Deal with China for Karakoram Highway Revamp


ISLAMABAD: The Economic Coordination Committee (ECC), led by Finance Minister Senator Muhammad Aurangzeb, convened today at the Finance Division to discuss critical economic initiatives. Among the top agenda items was the approval of a $2 billion contract with China for the realignment of the Karakoram Highway (KKH) from Thakot to Raikot, a significant project under Phase II of the China-Pakistan Economic Corridor (CPEC).

The meeting, attended by key ministers and senior officials, deliberated on the Ministry of Communications’ proposal regarding the framework agreement for this 241-kilometer stretch of the KKH. Following thorough discussions, the ECC authorized the Ministry of Communications and the National Highway Authority (NHA) to move forward with the project, ensuring compliance with Public Procurement Rules, 2004.

In addition to the KKH project, the ECC reviewed the Chakdara-Timergara Road Project (N-45) and granted approval for procuring consultancy services for the Section-1 of the Chakdara-Chitral Road. This decision was made under the same procurement rules after consulting relevant stakeholders.

Furthermore, the ECC approved revisions to the State Bank of Pakistan’s Home Remittances Incentive Schemes, introducing a new structure that links rewards to the growth of remittance inflows. The changes aim to further incentivize banks and exchange companies, ultimately bolstering Pakistan's foreign exchange reserves.