Prime Minister Yusuf Raza Gilani Thursday approved $90 million for the restoration of Karakoram Highway (KKH) out of the financial help provided by the Chinese government. The credit facility had been extended by the China as part of a larger confessional facility for flood reconstruction activities in Communication, Energy and Transport Sectors.
The operationalisation of Karakoram Highway has been a priority for the government due to its strategic significance. It is an important means of communication for the people, as well as serving as a vital trade route. The highway, connecting Gilgit-Baltistan to the ancient Silk Route, runs approximately 1,300 km from Kashgar, a city in the Xinjiang region of China, to Abbottabad.
An extension of the highway south west from Abbottabad, meets the Grand Trunk Road, at Hassanabdal, Pakistan. This important trade route cuts through the collision zone between the Eurasian and Indian plates, where China, Tajikistan, Afghanistan and Pakistan come within 250 kilometers of each other. Due to the extremely sensitive Kashmir conflict between India and Pakistan, the Karakoram highway has immense strategic and military significant.
