Investment will expand Pakistan’s regional connectivity and improve traffic efficiency
The Asian Development Bank (ADB) has approved a five-year package worth $800 million for Pakistan to link Central Asia with China.
The investment project will help to improve regional connectivity and trade in the Central Asia Regional Economic Cooperation (CAREC) corridor in Pakistan.
According to a press release by the Asian Development Bank, the country will receive first instalment of $180 million this year.
“Road networks in Sindh, Punjab and Khyber-Pakhtunkhwa (K-P) will be rehabilitated and upgraded with the MFF’s first tranche,” it added.
The second and third instalment, worth $260 million and $360 million, respectively, are expected to be approved in 2019 and 2021.
The FUND will be used upgrade a total of 747km of road along the CAREEC corridor.
According to Bank’s Director Transport and Communication Division Dong-Soo Pyo, Pakistan’s unique geographic location provides a unique potential and opportunity for the country to become a regional transport and trade hub.
However, Pakistan has a poor track record in utilizing funds. Half of the ADB-funded projects worth $3.4 billion have either become problematic or put on the watch list due to implementation delays, according to a latest portfolio review.
ADB says that the upgrading of selected sections of N-55 into 4-lane dual carriageway through this MFF will be an important step to enhance national and regional connectivity and trade via the CAREC Corridors 5 and 6, by improving the efficiency for road traffic along the CAREC corridors in the country.
Pakistan’s trade has been centered on sea traffic while transit trade through the country remains limited as poor and costly transport, and cross-border infrastructure and services hinder the realization of this untapped potential.
The investment programme further intends to strengthen the National Highway Authority capacity to carry out due diligence work for subsequent tranches and to implement each tranche project under the MFF as designed.