 "Pakistan back to ‘cup in hand’ stance, seeks ADB funds as China pulls out of bn rail project")
After China refused to fund the Mainline-I (ML-1) railways project, a key component of the China-Pakistan Economic Corridor (CPEC), Pakistan has approached the Asian Development Bank (ADB) for funds.
Pakistan has turned to Asian Development Bank (ADB) after China refused to finance a key railway project under the China-Pakistan Economic Corridor (CPEC) that is expected to cost $7 billion, according to a report.
The CPEC is one of the most important components of Chinese leader Xi Jinping’s Belt and Road Initiative (BRI), a network of infrastructure projects across the world that is aimed to connect China with the world and boost trade, improve China’s relationships with countries, and asset influence the world over.
Yet China has refused to finance Pakistan’s Mainline-I (ML-1) railways project, forcing Pakistan to approach the ADB, as per the Express Tribune.
However, the ADB has shown willingness to provide only 60 per cent of the funding whereas Pakistan has requested it to join hands with other multinational lenders to provide complete funds, the report said.
The ML-1 is 1,872-kilometers-long project connecting Karachi in the country’s south to Peshawar in the north. It is central to CPEC and is envisioned to be used in transporting goods as well as minerals extracted in the mineral-rich Balochistan province. It includes the upgradation and modernisation of the colonial-era railway infrastructure and seeks to double the tracks and instal new signal systems and improve maintenance mechanisms.
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Initially, Pakistan had committed to provide 85 per cent of the ML-1 funds. China asked Pakistan to bring the projected cost down from $10 billion to $6.7 billion. But the funds never came.
The ADB along with the AIIB has shown willingness to provide about 60 per cent funding for the Karachi-Rohri section of the project, the report said.
The ADB may support other sections as well in the future but is not willing to commit at the moment, the report said.
The completion of the Karachi-Rohri section is critical for transporting copper and gold from the Reko Diq mines in Balochistan, which is expected to start production in 2028, the report quoted sources as saying.
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