The Asian Development Bank (ADB) is likely to approve a $290 million loan for 'Sub-regional Connectivity and Trade Facilitation-I' project to enhance trade relations with Afghanistan, Central Asian states and some part of Russia, it is learnt.
Sources told Business Recorder here on Friday that ADB has shown interest to offer this amount and both the government and the Bank are negotiating this initiative to augment economic and trade relations in the region.
They said that the project was designed to achieve three specific objectives ie improvement of road sector efficiency on the main transport corridors, support regional co-operation by removing or relaxing physical, institutional and other barriers to improved transportation and increased trade, and institutional capacity building of National Highway Authority (NHA).
Under the project, different locations on which improvement and rehabilitation work would be executed are National Highway N-25, Hub-Uthal, Balochistan N-70, Multan-Muzaffargarh, Punjab N-50, Khanozai-Mughal Kot, Balochistan-NWFP N-35, Hasan Abdal-Manshera, NWFP N-65, Sukkur-Jacobabad, Sindh N-80, Tarnol-Jand, Punjab N-70, Qila Saifullah-Wiagum Rud, Balochistan. Sources said that this project also includes institutional strengthening of National Highway Authority (NHA).
As Pakistan ports and roads corridors offer the most economical route to Afghanistan, Central Asia and parts of Russia, through implementation of this project Pakistan would work as a bridge between eastern and western Asia.
By alleviating physical, institutional and other constraints through this project, the country would take full advantage of its location and potential for increased trade through improved trade facilitation, rehabilitation of transport link, efficient cross-border movements and increased efficacy at ports.
Once Gwadar port is completed, the efficient and improved national highway system would contribute adequately to the economy of the country by lowering transportation cost and road safety, sources said.
The bank would provide $273 million from its Ordinary Capital Resources (OCR) and $17 million from Asian Development Fund (ADF). National Highway Authority would be the executing agency of the project.