AIP II Highlights-Border Economies

1. Key Precepts of AIP II Approach

Provision of education related infrastructure (establishing FATA University, for e.g.),

establishment of dams, more agricultural research facilities, Pak-Afghan border market
development, construction and extension of roads to enhance communications, new development
interventions in Merged Areas (MA) costing Rs. 65 billion, and further development of new
border crossings like Angoor Ada.
 
 2.         Key Development Outputs/Results to Pursue

There is no PAMframe for development of border economies in MAs, as such. However, one can glean
information from Annual Development Plans (ADPs) to get a fair idea of what the federal and provincial
governments are trying to pursue- Briefly put, they are as follows-
 Enhancing water availability and agriculture through building dams
 Increasing agricultural productivity through upgrading research institutes
 Extending and building roads for enhanced connectivity
 Upgrade border crossings to enhance trade
 Establish Khyber economic zone, in pursuance of border markets objective
 Raise education level through scholarships, new schools and establishing FATA university
 Infrastructure development, for security and economic growth purposes
 10 year development program at federal level and a 3 year development program at provincial
level
 Establishment of industrial estates

 
Type A –
 196 Km roads at a cost of Rs 4,057 million to facilitate travel and connecting Trade Routes (7
Units).
 55 KM Border Crossing Roads (2 Units) at a cost of Rs. 1,169 million for connecting border
crossings with other roads
 Ext of Makin Chaleria BT Road to Hingamal road (NW Border) at Rs. 318 million to facilitate
travel and trade
 Improvement & widening of road from main Ghallanai to Gursal pass Afghan Border ) at Rs.
685 million to facilitate travel and trade
 Construction of road linking Mehsud area from Shawal to Afghan border at Rs. 450million to
facilitate travel and trade
 Upgrading Arid Zone Research Institute in S. Waziristan and N. Waziristan for increasing
productivity of agriculture in these areas
 Kurram Tangi, Mohmand and Chao Tangi Dams for increasing water availability, electricity
production and bringing more land under cultivation
 Merged District 10 year development program for overall economic uplift
 Infrastructure construction of 4*wings in Khyber agency for beefing up security
  ABC cable for Peshawar, Khyber and Bannu for improving electricity provision
 Upgrading and improving Border Crossings like Angoor Ada and Kharlachi, meant for improving
trade flows
 3-year, Rs. 65 billion development program for the MAs, meant for overall uplift of MAs

Type B –
Pak-Afghan Economic Zone, Khyber district, part of Border Economies work

Type C –
 Extension of RAAST facility to Pak-Afghan traders and overall trade infrastructure
 Facilitation of cashless transactions at border facilities
 Using Livestock offices/facilities for medical facilities for Afghan people. Additionally,
facilitate/incentivize the pharmaceutical sector to establish production facilities in industrial
estates in NMDs, which will not only make medicines available in NMDs (a substantial issue
historically), but also increase Pakistan’s medical exports to Afghanistan
 Improvement/integration of border management system (like Custom’s WeBOC) to ease flow of
data between Pakistan and Afghanistan, for lessening time of waiting at borders