Peshawar–Torkham Motorway Cost Jumps to Rs. 130 Billion as Government Considers Restructuring

Peshawar–Torkham Motorway

Pakistan’s long-awaited Peshawar–Torkham Motorway project is facing major challenges as rising costs and repeated bidding failures have forced the government to consider restructuring the project. The estimated cost has now climbed to nearly Rs. 130 billion, significantly higher than the original budget.

The 47-kilometre motorway is a key infrastructure project designed to improve connectivity between Peshawar and the Torkham border crossing. It is being financed through a $460 million loan from the World Bank, which was signed in December 2019 under the Khyber Pakhtunkhwa Economic Corridor initiative.

When the project was first approved, its estimated cost was around Rs. 41.44 billion. However, due to delays, inflation, and multiple unsuccessful bidding attempts, the budget has increased dramatically. Despite several years passing since its approval, construction work has yet to begin.

The situation has become more challenging because the World Bank loan deadline expired on May 28, 2026, adding pressure on authorities to finalize a new strategy and move the project forward.

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In addition to the motorway, the original plan also included a 55-kilometre Southern Link Road. This road was designed to connect major highways and improve transportation networks, helping facilitate smoother movement of goods and passengers across the region.

The Peshawar–Torkham Motorway is considered an important part of the broader Peshawar–Jalalabad–Kabul trade corridor, which aims to strengthen regional connectivity and increase cross-border trade between Pakistan and Afghanistan. Improved road infrastructure is expected to reduce travel times, lower transportation costs, and support economic growth in the region.

Government officials are now reviewing different options to restructure the project and overcome financial and administrative hurdles. If completed successfully, the motorway could become a vital trade route and a major boost for regional commerce, investment, and economic development.

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