ISLAMABAD: Pakistan has allocated Rs. 5 billion for the relocation of a 102-kilometre section of the Karakoram Highway. The section runs between Thakot and Raikot.
The funding has been included in the Public Sector Development Programme (PSDP) for fiscal year 2026-27. The project has an estimated total cost of Rs. 502.6 billion. The remaining funding will be required over the coming years.
The relocation is linked to major dam projects along the Indus River. Parts of the existing Karakoram Highway could be affected by the development of these reservoirs. The planned route changes aim to keep the highway operational.
The project will realign sections of the N-35 route between Thakot and Raikot. The work is expected to involve major construction in difficult mountainous areas. It may include new road sections, bridges and tunnels.
The Karakoram Highway is an important transport link for northern Pakistan. It connects areas of Khyber Pakhtunkhwa and Gilgit-Baltistan with other parts of the country. The route supports passenger travel, freight movement and the supply of essential goods.
The highway also serves tourism and trade activities in the northern regions. It provides an important connection towards the Pakistan-China border. Maintaining the route is therefore important for communities and businesses that depend on it.
The Thakot-Raikot project is part of wider infrastructure planning in the northern areas. The relocation will help protect the highway from the impact of changing river and reservoir conditions.
The government has linked the project with broader infrastructure and connectivity goals under URAAN Pakistan. The focus includes long-term transport links, trade and regional development.
The Rs. 5 billion allocation represents an initial funding commitment against the project’s much larger estimated cost. The project will require continued financing and phased implementation before the full relocation can be completed.
