China to fund 85 % of Karakoram Highway realignment cost

Report by Engineering Post

China will provide as much as 85 percent of Karakoram Highway relocation which has been necessitated owing to construction of dams like Dasu Dam  over River Indus.

Relocation of Karakoram Highway between Thakot and Raikot, 241 kilometers, is estimated to cost Rs 502591.319 million as approved by the Executive Committee of the National Economic Council (ECNEC in June 2024.It will be funded by China’s EXIM. About Rs 5000.000 million were reported to have been incurred on the project till end June 2025 and an allocation of Rs 6500.000 million has since been provided under the Public Sector Development Program (PSDP) of the Federal Government for ongoing financial year 2025-26.

Construction of the Karakoram  Highway (KKH) was started  in 1959 as a joint project of China and Pakistan. It had been completed  in 1979 but opened for public traffic  in 1986. Frontier Works Organization (FWO) had constructed  KKH from the Pakistan side . About 1000 people had lost their lives during the KKH mainly due to land sliding. They included 810 Pakistanis and 200 Chinese personnel.