Karakoram Highway Pakistani-Chinese border at Khunjerab Pass. As part of the $46 billion China Pakistan Economic Corridor, reconstruction and upgrade works on the Pakistani portion of the Karakoram Highway (KKH) are underway. The KKH spans the long distance between the China-Pakistan border and the town of Hasan Abdal. At Burhan Interchange near Hasan Abdal, the existing M1 motorway will intersect the Karakoram Highway. From there, access onwards to Islamabad and Lahore continues as part of the existing M1 and M2 motorways, while Hasan Abdal will also be at intersection of the Eastern Alignment, and the Western Alignment which will lead towards the
Reconstruction of the Karakoram Highway Bank of China and the China Development Bank. For comparison, loans for previous Pakistani infrastructure projects financed by the World Bank carried an interest rate between 5% and 8.5%, while interest rates on market loans approach 12%. The China Development Bank will finance the $920 million towards the cost of reconstruction of the portion of the Karakoram Highway between Hasan Abdal and Raikot. An addition $1.26 billion will be lent by the China Exim Bank for the construction of the Havelian to Thakot portion of this stretch of roadway, to be dispersed as low-interest rate concessional loans. Construction works on