Prime Minister Nawaz Sharif on Friday principally approved the proposed alignment of Pakistan-China Trade Corridor, officials said.
He, however, directed for further evaluation of the proposal in terms of time and cost efficiency.
Pakistan-China Economic Corridor, is the future of the country and it will connect Pakistan with China, making Pakistan a hub of transit trade in the region, reported Xinhua citing Sharif as saying.
Sharif made the remarks while meeting his ministers to discuss the project from Kashgar to Khunjerab and Gwadar, a statement from the prime minister's office said.
Experts are of the view that the corridor would transform Pakistan into a hub of trade and commerce as it envisages establishing several economic zones and physical links connecting Pakistan and China as well as the region.
The project is expected to cost around $18 billion.
In July, the two countries signed several agreements following a meeting between Sharif and his Chinese counterpart Li Keqiang in Beijing.
The 2,000-km road and rail link, connecting Chinese northwestern city of Kashgar to southwestern Pakistani port of Gwadar, was among the pacts inked by the two countries.