ISLAMABAD: The World Bank–financed Khyber Pakhtunkhwa Integrated Tourism Development Project (KITE) continues to make steady progress, with overall implementation and achievement of development objectives rated “Moderately Satisfactory” in the latest Implementation Status & Results Report (ISR).
The USD100 million IDA-funded project, approved in June 2019 and scheduled to close on June 30, 2026, aims to improve tourism-enabling infrastructure, enhance tourism assets, and strengthen destination management for sustainable tourism development in Khyber Pakhtunkhwa.
According to the report, several visible milestones were achieved during 2025. The Dera Ismail Khan Museum was opened to the public in November, illumination works at the UNESCO-listed Takht-e-Bahi Monastery were completed, and signboards were installed at key tourist destinations including Kumrat. The project also delivered snow removal vehicles to authorities in Galiyat, Kumrat, and Kaghan, improving year-round accessibility.
Over 8,000 foreign tourists visit KP’s Northern Areas in 2025
On the destination management front, seven major planning and feasibility studies have been completed, including Integrated Tourism Zones (ITZs), Destination Investment and Management Plans (DIMPs), and conservation plans for heritage sites. These interventions have strengthened institutional planning capacity and laid the groundwork for private sector participation.
Private investment mobilisation remains on track. While cumulative private investment recorded by December 2025 stood at US$350,000, the government has launched ITZs for private investors, with Thandiani ITZ alone attracting USD42 million in pipeline investments. The end-of-project target is USD6 million.
The project has already exceeded several social impact targets. A total of 275,682 individuals have benefited from improved infrastructure and services, well above the revised target of 175,000. These include users of prefabricated toilets at tourist sites, beneficiaries of Rescue 1122 tourist facilitation stations, visitors to illuminated heritage sites, and callers assisted through the 1422 tourism helpline. Women accounted for a significant share of beneficiaries, with over 33,000 women benefiting from project-supported facilities and services.
Tourism-related employment outcomes have also been positive. The project has generated 2,664 direct and indirect jobs against a target of 2,500, while more than 100,000 labor days have been created through construction and rehabilitation works. Training and business development services were provided to over 900 tourism and travel MSMEs and workers.
Digital transformation remains a notable achievement. The Tourism Management Information System (TMIS), e-booking platforms, and a Tourist Facilitation Hub are fully operational, with TMIS receiving a PASHA Award for innovation in the public sector.
Disbursement performance under the original IDA credit of US$70 million is nearly complete at 99.95 percent. Disbursement under the additional financing of US$30 million, approved in April 2025, has just begun.
The World Bank maintained the project’s overall risk rating at Moderate, with political, macroeconomic, fiduciary, and institutional capacity risks all assessed as manageable.
With most outcome indicators either achieved or on track and key investments nearing completion, the report notes that the project is well-positioned to meet its development objectives by the June 2026 closing date, consolidating tourism as a driver of economic growth and cultural preservation in Khyber Pakhtunkhwa.
Copyright Business Recorder, 2026
