For many years the train was either completely unavailable or very limited due to the shadow of terrorism along the route. Now things are different.
Operation Zarb-e-Azb has established durable peace in the area and now the government is focusing on improving education and the economy, observers say.
The main challenges the ten Economic Co-operation Organisation (ECO) countries face are extremism, terrorism and drug trafficking, officials say.
The two countries agreed to work together to fight extremism and enhance economic relations.
The Khyber Pakhtunkhwa government is undertaking the project to boost development and trade.
The Taliban destroyed the Swat Valley tourism facility in 2008.
Illegal money transfer aids militants, observers warn.
Talks yielded a number of agreements, including one on fighting drug trafficking.