Islamabad: Pakistan has asked China for a USD 1.6 billion soft credit line so that the Karakorum Highway can be re-aligned from Thakot to Raikot, according to news sources.
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Sources say that the concept clearance for the project has already been given by the Central Development Working Party (CWDP). The project is part of the China-Pakistan Economic Corridor (CPEC). It is expected to cost USD 1.8 billion, which will be split 90:10 between China and Pakistan. The Chinese government has given their approval for a USD 1.620 billion loan, and the Pakistani government will give USD 180 million through the Public Sector Development Program (PSDP).
The Planning Commission of Pakistan will give the Ministry of Communications permission for the project to move forward with the concept clearance. China has also agreed to a government-to-government (G2G) partnership and is paying for a feasibility study and detailed design of the 256-kilometer Karakorum Highway. The Pattan, Dasu, and Diamer Bhasha dams on the River Indus are the most important parts of the project.