ISLAMABAD, July 25 (ABC): The government has spent Rs326.95 million on the Khyber Pass Economic Corridor (KPEC) project as of June 2026.
According to official documents available with Wealth Pakistan, the government has allocated Rs2.5 billion for the project in the 2026-27 fiscal year. The allocation includes Rs300 million from domestic resources and Rs2.2 billion in World Bank financing.
The Executive Committee of the National Economic Council (ECNEC) approved the revised project in July 2020. The project has a total PC-I cost of about Rs77.9 billion. It aims to upgrade transport infrastructure linking Peshawar with the Torkham border crossing.
Procurement stage continues
According to the documents, the project remained in the procurement stage as of July 1, 2026.
Cumulative expenditure reached Rs326.95 million by the end of June this year. The remaining Rs77.58 billion will be spent during the implementation phase.
Regional trade and connectivity
The Khyber Pass Economic Corridor aims to strengthen trade links between Pakistan and Afghanistan. It also seeks to lay the foundation for greater connectivity with Central Asia.
The project will improve road infrastructure and reduce travel time. It will also facilitate freight movement, improve road safety and enhance logistics efficiency along one of Pakistan’s busiest international trade routes.
According to the documents, the project will boost regional commerce and support economic activity in Khyber Pakhtunkhwa. It is also expected to improve market access, attract private investment and create jobs during construction and operation.
Strategic transport corridor
The project forms part of Pakistan’s broader efforts to modernise its transport network and deepen regional economic integration.
Once completed, the corridor will provide a more efficient transport route for cross-border trade. It is also expected to reduce logistics costs and strengthen Pakistan’s role as a regional trade and transit corridor linking South Asia with Afghanistan and Central Asia.
