ADB approves $800m to improve road connectivity in Pakistan
The Asian Development Bank (ADB) has approved financing of $800m for improvement of regional connectivity and trade in the Central Asia Regional Economic Cooperation (CAREC) corridors in Pakistan.
The multitranche financing facility (MFF) will be used to further improve road traffic efficiency, as well as enhance Pakistan’s regional connectivity links.
Initially, road infrastructure in Pakistan’s Sindh, Punjab, and Khyber Pakhtunkhwa regions will be rehabilitated and upgraded this year using MFF’s first tranche, which is worth $180m.
The second and third tranches are worth $260m and $360m respectively, and set to be approved by ADB in 2019 and 2021.
The MFF will be used to improve a total of 747km of road along the CAREC corridor.
ADB Central and West Asia Department Transport and Communications Division director Dong-Soo Pyo said: "Pakistan’s unique geographic location, at the crossroads of Central Asia, the People’s Republic of China, and South Asia, provides a unique potential and opportunity for the country to become a regional transport and trade hub.
"The investment programme will help the Government of Pakistan realise this potential, improving trade and connectivity in the CAREC corridors with the long-term goal of achieving inclusive growth and sustainable development in mind.”
ADB anticipates that upgrading of the 263,000km road infrastructure would ensure transport safety as well as increase the country’s export competitiveness and overall economic growth.
The investment programme further intends to strengthen the National Highway Authority capacity to carry out due diligence work for subsequent tranches and to implement each tranche project under the MFF as designed.
Image: The MFF will help enhance regional connectivity and trade in the CAREC corridors in Pakistan. Photo: © Asian Development Bank.