The government is initiating a significant restructuring of the World Bank-funded Peshawar-Torkham Motorway project following substantial delays and a massive escalation in project costs. Originally budgeted at PKR 41.44 billion, the project’s estimated cost has surged to nearly PKR 130 billion, necessitating a thorough review of its implementation strategy.
Project Challenges and Revisions
Financed by a USD 460 million World Bank loan signed in December 2019, the project has yet to begin construction despite the passage of over five years and the arrival of the loan's original May 2026 closing date.
Key adjustments to the project, as proposed in a working paper cleared by the Central Development Working Party (CDWP), include:
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Revised Scope: The 55-kilometre Southern Link Road component has been officially removed from the project scope.
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Phased Construction: The main Peshawar-Torkham Expressway is now planned to be divided into three distinct construction packages of approximately 14.3km, 15km, and 15km.
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Updated Estimates: The project faced repeated bidding cancellations because submitted costs exceeded both the approved estimates and available loan financing. Officials noted that initial calculations were based on outdated 2014 rates, necessitating a new PC-I submission that incorporates 2025 construction rates.
Strategic Importance
Designed as a four-lane, access-controlled corridor, the motorway is a vital link between Peshawar and Torkham. It serves as a cornerstone of the broader Peshawar-Jalalabad-Kabul motorway initiative, aimed at bolstering regional trade and improving connectivity between Pakistan and its neighbors in Central and South Asia.
Currently, authorities are in discussions with the World Bank to extend the loan period to accommodate the revised project plan and move toward final implementation.
