KPEC drives economic growth as shield against extremism

PESHAWAR: The Khyber Pass Economic Corridor (KPEC) project, valued at USD 77 million, aims to improve the economic situation of the denizens of the surrounding areas, and serve as a catalyst to discourage extremism and militancy in the region.

This World Bank funded project aims to connect Pakistan to Central Asia, via a road project running though till Afghanistan. Beyond serving as an alternative to the China Pakistan Economic Corridor (CPEC), both for economic connectivity and multinational dependency, this corridor is reaching for broader goals, beyond only economic uplift of the locals.

Consultative ‘KPEC Development Plan’ workshop held in Peshawar

Khyber Pakhtunkhwa Planning and Development (P&D) Department held a consultative session on the flagship project Khyber Pass Economic Corridor (KPEC) here today. The event was attended by members of the public sector, private investors, NESPAK National Engineering Services Pakistan representatives, academia as well as environmental organisations.

Addressing the strategic potential of the KPEC, Additional Secretary Muhammad Taufeeq said that this mega project is divided into two main components. “The first is a four-tiered transport corridor connecting Pakistan to Afghanistan, aimed at enhancing regional mobility. The second comprises a suite of integrated development initiatives—including a border bazaar, IT park, and economic zone—designed to revitalise an area historically marred by conflict, low economic activity, and underdeveloped infrastructure,” he said.

Taufeeq added that these projects surrounding the KPEC will benefit the local population on multiple fronts. He said, “The corridor is not just about connectivity—it’s about economic regeneration. The second component, in particular, targets the root causes of regional instability by fostering financial inclusion, infrastructure improvement, and employment generation.”

He added that economic stability is a key step toward long-term peace, saying, “When people have jobs and opportunities, they’re less likely to be drawn towards destructive paths. This is about creating a sustainable alternative to militancy, by first addressing economic deprivation.”

PROJECT VISION: FROM TRANSPORT TO TRANSFORMATION

KPEC Project Director Imran Zahoor stressed that the corridor is being developed not merely as a transport route, but as a comprehensive economic catalyst. “We’re transitioning from a simple transport corridor to a fully-fledged economic corridor,” Zahoor said, adding, “That requires a deep understanding of both the infrastructure and the financing mechanisms involved.”

Funded by the World Bank, with initiative led by the Government of Pakistan, the project has so far proceeded without operational or financial bottlenecks, he told HUM News. “The inclusivity of this initiative stands out. Stakeholders from the public and private sectors, academia, and environmental agencies are all actively engaged [in furthering the KPEC].”

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He said that spanning 100 kilometres, this corridor will link Pakistan with Central Asia, opening up avenues for trade, investment, and cross-border collaboration. Citing international precedents such as the Greater Mekong Subregion (GMS) corridors, Zahoor emphasised the transformative effects similar projects have had in East Asian economies.

Imran Zahoor said, “Our goal goes beyond infrastructure—we’re focusing on the communities surrounding the corridor. From boosting SME growth to ensuring environmental safeguards, this is a people-centric approach”.

“Employment generation is at the heart of our efforts,” he added.

LOCAL COMMUNITIES AT THE FOREFRONT OF ECONOMIC ZONE DEVELOPMENT

Engineer Mudassir Zeb Khan, Manager Project Planning at the Khyber Pakhtunkhwa Economic Development Committee, echoed this sentiment, particularly regarding the development of economic zones under KPEC.

“Every time an economic zone is established, it creates a ripple effect,” Khan said. “Local communities gain access to employment opportunities, small businesses get a platform to thrive, and the broader region begins to see the fruits of sustained development.”

World Bank urban planning consultant Mr Jens Aerts also addressed the event, highlighting the transformative potential of the corridor project. He emphasised that enhanced regional connectivity would serve as a catalyst for economic growth and social development, ultimately improving the quality of life for local communities. Mr Aerts encouraged stakeholders to actively contribute their insights and ideas, stressing the importance of a collaborative approach to achieving the project’s economic, social, and environmental objectives in a more effective and inclusive manner.