Key Takeaways
- Rs. 5 billion allocated for relocating 102 kilometers of Karakoram Highway.
- Project estimated to cost Rs. 502.6 billion in total.
- Initiative aims to maintain connectivity in northern Khyber Pakhtunkhwa and Gilgit-Baltistan.
Pakistan has allocated Rs. 5 billion in the Fiscal Year 2026-27 Public Sector Development Program (PSDP) for relocating a 102-kilometer section of the Karakoram Highway between Thakot and Raikot.
The project, with an estimated total cost of Rs. 502.6 billion, is aimed at maintaining uninterrupted connectivity along the Indus corridor, particularly in northern Khyber Pakhtunkhwa and Gilgit-Baltistan.
The relocation is necessary due to sections of the existing highway being affected by major dam projects being developed along the Indus River, which are expected to change the surrounding landscape.
The Karakoram Highway is a key transport route connecting northern Khyber Pakhtunkhwa and Gilgit-Baltistan with the rest of Pakistan, playing a vital role in passenger movement, freight transportation, fuel supply chains, tourism, and access to essential services.
The project is part of broader efforts to upgrade and protect the Karakoram Highway as hydropower projects expand along the Indus Valley, linking the initiative with the infrastructure goals under URAAN Pakistan.
The relocation is expected to improve the long-term reliability of the route and maintain connectivity for communities that depend on the highway, ensuring that northern Pakistan remains connected even in areas where the existing route becomes unusable.
Since the allocated amount represents only an initial portion of the overall cost, the project will require funding over multiple years, with complex mountain construction work involving road realignments, bridges, and tunnels.
The scale of the project is significant, with the government linking the initiative with long-term connectivity, trade, and regional development goals.
