ISLAMABAD – Pakistan has allocated Rs5 billion for the relocation of a major section of the Karakoram Highway.
The allocation has been made under the Public Sector Development Programme (PSDP) for fiscal year 2026-27. The funds will support the relocation of a 102-kilometre road section.
The affected section lies between Thakot and Raikot. The project has an estimated total cost of Rs502.6 billion.
The relocation is linked to ongoing and planned dam projects in the Indus corridor. These projects require parts of the existing road route to be realigned.
The Karakoram Highway serves as an important transport route in northern Pakistan. It connects communities and supports movement between several areas of the region.
The road is also widely used by tourists travelling towards northern destinations. It carries freight and helps maintain supplies of essential goods.
Fuel transportation and regional trade also depend on the highway. The route provides access to important services for communities along its path.
The planned relocation will involve extensive road realignment and related infrastructure development. The work is expected to support continued connectivity along the Indus corridor.
According to the project plan, the existing route cannot remain unchanged in areas affected by dam development. New sections will therefore need to be constructed to maintain road access.
The Karakoram Highway is also important for commercial movement between northern areas and other parts of the country. Any disruption could affect transportation and local economic activity.
The government’s latest allocation represents an initial funding provision for the large-scale project. The total estimated cost is significantly higher than the amount allocated for the current financial year.
The project will require major construction and infrastructure works over the longer term. These works are expected to include road realignment and related facilities.
The Thakot-Raikot section is particularly important because it forms part of the wider northern transport network. Maintaining this connection is considered necessary as development projects progress.
The relocation plan aims to prevent dam construction from disrupting the movement of people and goods. It will also help preserve access to communities located along the Indus corridor.
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The Karakoram Highway remains a key route for tourism, trade and transportation in northern Pakistan. The planned project is intended to maintain its connectivity despite major infrastructure development in the region.
