China and Pakistan launch $327M joint venture to upgrade Karakoram Highway for increased trade
Back in the ’60s and ’70s, Pakistan and China cooperated to build the Karakoram Highway, or the “Friendship Road”, which is the world’s highest highway, linking Pakistan with the Chinese mainland, traversing the mountains of the Hindukush. Now, Pakistan and China have announced a joint venture worth $327M dollars that will significantly upgrade the highway and improve its capacity to act as a conduit for trade between the two countries.
Over the last many years, one of the key reasons why economists and policy planners have been bullish about Pakistan’s long term economic and strategic prospects is because of the country’s close cooperation with China. The Gwadar port is seen as a very important resource that Pakistan and China can both leverage for their mutual benefit. China has already made serious investments in securing mineral reserves, iron ore, oil and gas in Africa, and a port in the warm waters of the Arabian sea, linked to the Chinese mainland through rail and highway, is of tremendous value to the PRC as it continues its rapid development.
The News reports:
Pak, China sign loan agreement to finance up-gradation of Karakoram Highway
ISLAMABAD: The Export Import Bank of China has signed a loan agreement with Pakistan for the up-gradation of Karakoram Highway project.
Under the agreement China will provide a credit of $ 327 million for the expansion of the KKH project.
The qualitative up-gradation of Pakistan-China Road Linkage will further facilitate and enhance tourism and trade between the two friendly neighbouring countries.
The expansion project is being executed jointly by the China Road and Bridge Corporation (CRBC) and Pakistan’s National Highway Authority (NHA).
The agreement was signed by the Ambassador of Pakistan to China Salman Bashir and Xin Bin, Deputy General Manager Commercial of Loan Project.
The 1300 kilometres (800 miles) long KKH, or the N-5, originates from Hassan Abdal, a place some 45 kilometres from Islamabad on the Islamabad – Peshawar Highway, goes through Abbotabad, Manshera, crosses the River Indus at Thakot, on to Gilgit (through Besham, Pattan and Sazin) and then to Chilas, Hunza and Sost before crossing the Khunjerab Pass at the height of some 4800 metres (15,750ft) – the Zero Point between Pakistan and China. It then enters the high Central Asian plateau before winding down through the Pamirs to Kashgar, at the western edge of the Taklamakan Desert. It is a marvel of human endurance, ingenuity and determination. Both Pakistani and Chinese workers and engineers worked day and night over some of the most formidable and inaccessible mountain ranges of the world, with deep gorges and torrential Indus running along the track with its full might. The Indus River flows northwest, dividing the Himalaya from the Karakoram. The KKH runs along the Indus for 310 kilometres of its climb north, winding around the foot of Nanga Parbat, the ninth highest mountain in the world. Not far north of Jaglot the Gilgit river joins the Indus from the west. The highway then leaves the Indus for Gilgit, Hunza and Khunjrab rivers to take on the Karakoram Range – where 12 of the 30 highest mountains in the world overlook the KKH. At Khunjrab Pass, the KKH proudly stands as the highest metalled border crossing in the world. En route to Khunjrab, before Gilgit, there is a road sign inviting the attention of the tourists to stop and see the the Hindu Kush mountains converge with the Karakoram Range, a part of the Himalayan mountain system. While traveling along the KKH, many a tourist wonder as to how the Pakistanis and Chinese ever get this road through? Since the road has been carved through a tectonic collision zone and still generally kept open.
Certainly, it is great step taken by both Goverments (China – Pakistan). The qualitative up-gradation of Pakistan-China Road Linkage will further facilitate and enhance tourism and trade between the two friendly neighbouring countries.
Karim Uddin
Active Tours Pakistan
WEB: http://www.visitatp.com
Dear sir,
It is great to hear news of such importance though there are many questions left unanswered.
Is the government of pakistan taking a loan from the Export Import BAnk of China? couldn’t this project be done without a loan from china?
what are the terms of the loan?
what is the current status of the upgradation and what all is left to be done?
with all the new hydropower dams being proposed is the route going to be changed?
once the highway is upgraded what level of trade are we expecting?
does pakistan have a free trade agreement with china?
who are the contractors for the job? which company’s services have been hired? and who has done the feasibility for this project?
how many kilometers of the highway are going to be upgraded?
i would apreciate it if you could shed some light on these questions.
hoping to hear from you
haider
[...] down into Multan. We’ve also widened and upgraded the world’s highest highway, the Karakoram Friendship Highway and are building rail links through the length of Pakistan (Gwadar to [...]
[...] snaking down into Multan. We’ve also widened and upgraded the world’s highest highway, the Karakoram Friendship Highway and are building rail links through the length of Pakistan (Gwadar to [...]