ISLAMABAD: World Bank on Friday granted a loan of $406.6 million to Pakistan for the establishment of the Khyber Pass Economic Corridor (KPEC) Project, reported media sources.

Minister for Economic Affairs Hammad Azhar supervised the signing ceremony of the KPEC at the division.

According to the Economic Affairs Division, the project will construct 48 km long 4-Lane, dual carriageway high-speed access controlled motorway, from Peshawar to Torkham. This project will aim to promote economic development and uplift areas adjoining expressway falling in Khyber Pakhtunkhwa province.

In an another signing ceremony, Pakistan and Germany signed an agreement for Hydropower and Renewable Energy Phase-II worth €12.5 million.

Secretary Economic Affairs Division Dr Syed Pervaiz Abbas signed the agreement on behalf of Pakistan, while Country Director German Development Bank (KfW) Wolfgang Moellers signed the agreement on behalf of Germany.

The economic affairs minister also attended the signing ceremony.

According to details, under the agreement, KfW will provide grant assistance worth €12.5 million to the government of Gilgit-Baltistan and Aga Khan Rural Support programme.