By Ijaz Kakakhel

The federal government has spent Rs326.95 million on the World Bank-funded Khyber Pass Economic Corridor (KPEC) project till June 2026, with the remaining Rs77.58 billion of the revised project cost yet to be utilized as the work is set to gather pace ahead of its planned completion in May 2029.

According to an official document available with Wealth Pakistan, the federal government has allocated Rs2.5 billion for the project in the 2026-27 fiscal year, including Rs300 million from domestic resources and Rs2.2 billion in World Bank financing, as procurement advances ahead of major construction.

The Executive Committee of the National Economic Council (ECNEC) approved the revised project on July 16, 2020, with a total PC-I cost of about Rs77.91 billion to upgrade transport infrastructure linking Peshawar with the Torkham border crossing.

The project remained in the procurement stage as of July 1, 2026, with cumulative expenditure reaching around Rs326.95 million. The remaining Rs77.58 billion is expected to be spent during the implementation phase.

The latest status update shows that the procurement and contracting are underway, with major construction yet to begin.

The Khyber Pass Economic Corridor is designed to strengthen trade links between Pakistan and Afghanistan while laying the groundwork for greater connectivity with Central Asia.

The project aims to improve road infrastructure, cut travel time, facilitate freight movement, enhance safety along one of Pakistan's busiest international trade routes, improve logistics and transport efficiency, boost regional commerce and support economic activity in Khyber Pakhtunkhwa by improving market access, attracting private investment and creating jobs during construction and operation.

The project forms part of Pakistan's broader efforts to modernize its transport network and deepen regional economic integration. Once completed, it is expected to provide a more efficient transport route for cross-border trade, lowering logistics costs and strengthening Pakistan's role as a regional trade and transit corridor connecting South Asia with Afghanistan and Central Asia.

Credit: INP-WealthPk