ISLAMABAD, Oct 8: The government has prepared a Rs400 billion plan to rehabilitate the country’s major road network by 2012 so that quick trade and travel linkages with China and the Central Asian Republics can be provided.

Official sources told Dawn that the plan was aimed at developing a national trade corridor that will particularly help to enhance trade relations with China and Central Asia.

The plan has also been linked to Gwadar port which is expected to be fully operational by December 2,006, instead of June 2,006, and will have increased facilities — including an international airport, free industrial zone, export processing zone and a housing scheme for local and foreign investors.

The sources said that problems being faced in the transit trade would also be solved through the improvement of the road network.

China has expressed willingness to provide financial and technical assistance to help rehabilitate 616km long Karakoram Highway which has been included in the rehabilitation plan.

The Chinese government, sources said, had told the Pakistani authorities that Beijing was interested in improving trade relations with Central Asian states after having just 2,600km of distance between Gwadar and Kashghar. Currently, China is doing its trade with Central Asia through Shanghai.

Federal Minister for Communications Shamim Siddiqui, when contacted, confirmed that the plan had been approved to promote regional trade.

New road linkages, including Makran coastal highway, would encourage Chinese businessmen to establish contact with Central Asian States through Gwadar, he added.

Answering a question, he said Gwadar port was expected to be inaugurated by the Chinese prime minister. Last time, he said, the Chinese premier could not inaugurate the port despite being in Pakistan as it was yet to be completed.

He said 450km of the Indus highway (N-55) had so far been rehabilitated and once it was fully rehabilitated, it would be 400km shorter.

The sources said the Asian Development Bank had agreed to fund a $455.7 million cross-border infrastructure development programme aimed at creating a sub-regional corridor from Gwadar port to Afghanistan and Central Asia.

Under the programme, a Trade Facilitation and Land Border Crossing Authority is being established to supervise significant land border crossings and facilitate freight and passenger cross-border and transit traffic.

The authority will encourage regional cooperation by removing or relaxing physical, institutional and other barriers to improve transportation and increased trade. It will support preparation and adoption of cross-border agreements for road transport, including movement of containers.