Cost Rises to Nearly Rs130 Billion
The federal government is considering a major restructuring of the long-delayed Peshawar-Torkham Motorway project after repeated setbacks and a sharp increase in cost.
The 47-kilometer motorway was originally planned under the Khyber Pakhtunkhwa Economic Corridor initiative.
The project was designed to improve trade connectivity between Pakistan, Afghanistan and the wider region.
It was initially estimated to cost Rs41.44 billion.
However, the estimated cost has now risen to nearly Rs130 billion.
The project is being financed through a $460 million World Bank loan signed in December 2019.
Despite the passage of several years, construction work has not yet started.
The loan reached its closing date on May 28, 2026.
Southern Link Road Removed From Revised Plan
Under the original plan, the motorway also included a 55-kilometer Southern Link Road.
The road was meant to connect the motorway with the N-55 highway at Badhbher and further link it with the N-5 highway between Chamkani and Jhagra.
The route was also part of the broader Peshawar-Jalalabad-Kabul corridor.
Officials said the Central Development Working Party approved a revised implementation strategy last month.
Under the updated plan, the Southern Link Road has been removed.
The expressway will now be divided into three construction packages.
These packages will cover around 14.3 kilometers, 15 kilometers and 15 kilometers.
Repeated Bidding Failures Delay Project
Planning Commission documents show that bidding for the project failed several times.
Officials said bids were cancelled because they exceeded approved cost estimates and available loan financing.
The original estimates were prepared using the National Highway Authority’s 2014 Composite Scheduled Rates.
However, officials are now working on revised cost estimates based on 2025 rates.
The Planning Commission has blamed weak implementation capacity among key stakeholders for the delay.
These include the National Highway Authority, the Ministry of Communications, the Economic Affairs Division and the World Bank.
Officials are currently negotiating an extension of the World Bank loan agreement.
The government hopes that restructuring the project will improve implementation and help move construction forward.
