ISLAMABAD: The Asian Development Bank on Monday signed an agreement with the Pakistan government for a $100 million loan to build the remaining 64-kilometre section of M4 motorway connecting Shorkot and Khanewal in Punjab.

Secretary Economic Affairs Division, Tariq Bajwa and ADB Country Director for Pakistan Werner E Liepach signed the loan agreement during a ceremony attended by Finance Minister Ishaq Dar and ADB Vice President Wencai Zhang.

The project constitutes a key part of a 1,800km CAREC transport corridor linking the port city of Karachi in the south to major primary production and population centres including Lahore, Faisalabad, Islamabad and Peshawar, and on to Torkham on the northern border with Afghanistan.

Once completed, the transport project will substantially cut travel time between Karachi and Peshawar and link Pakistan with Central Asian countries boosting regional trade and commerce.

“Pakistan must grasp the opportunities presented by its strategic location. Investments in transport and connectivity under the framework of Central Asia Regional Economic Cooperation (CAREC) programmes, as well as other regional cooperation initiatives, can put Pakistan’s economic development on an upward trajectory,” said Mr Zhang.

The project marks ADB’s first co-financing with the Asian Infrastructure Investment Bank (AIIB). AIIB will provide a $100 million loan subject to its board approval later this month. The United Kingdom’s Department for International Development (DFID) has also committed a $34 million grant for the project. ADB will administer both the AIIB loan and the DFID grant.

ADB through its transport sector projects is assisting Pakistan to upgrade key sections of primary north-south highways and motorways.

Published in Dawn, June 21st, 2016