Karakoram Highway to Get Major Route Change Between Thakot and Raikot

Pakistan has earmarked Rs. 5 billion in its Fiscal Year 2026-27 Public Sector Development Program (PSDP) to relocate a 102-kilometer stretch of the Karakoram Highway between Thakot and Raikot. The project's total estimated cost amounts to Rs. 502.6 billion, with the primary objective of ensuring continuous connectivity along the Indus corridor.

The need for this relocation arises due to the anticipated impact of major dam projects along the Indus River on the existing Karakoram Highway's vulnerable sections. This realignment of the N-35 route aims to maintain the highway's functionality as the surrounding landscape transforms with reservoir construction. The Karakoram Highway serves as a crucial transportation artery connecting northern Khyber Pakhtunkhwa and Gilgit-Baltistan with the remainder of Pakistan, facilitating passenger movement, freight transport, fuel supply chains, tourism, and access to essential services.

This relocation initiative is expected to enhance the highway's long-term reliability and preserve connectivity for communities that rely on it. Moreover, the corridor assumes significance for trade activities and access towards the Pakistan-China border. The government allocated Rs. 5 billion for this project under the Fiscal Year 2026-27 PSDP, with the remaining Rs.

497.6 billion anticipated to be funded over multiple years. The project's scope encompasses intricate mountain construction work, involving road realignments, bridge constructions, and tunnels. The Thakot-Raikot relocation is part of the larger endeavor to upgrade and safeguard the Karakoram Highway in the face of expanding hydropower projects along the Indus Valley.

This initiative aligns with the government's infrastructure goals under URAAN Pakistan, primarily focusing on long-term connectivity, trade, and regional development. By ensuring continuous connectivity even in areas where the existing highway route might become unusable due to development activities, the project aims to maintain northern Pakistan's linkages.