Islamabad, Oct 23: Pakistan, China to Fund ML-1 Railway Project in Phases
Rather, both sides have agreed to fund the project in stages. The main line project will be divided into two distinct contracts for phased construction, according to sources.
Phase I, which will be completed next month, will provide $3.2 billion in finance. Railway lines from Karachi to Hyderabad and Hyderabad to Multan will be built during this phase. Following the successful completion of the first phase, a feasibility study will be conducted to cover the Multan to Peshawar portion in the second phase.
According to sources, Phase I finance will entail long-term Chinese loans, with Pakistan negotiating a low interest rate.
The phased contract strategy was adopted after the parties failed to achieve an agreement on a lump-sum $6.8 billion finance arrangement.
Phase I will be carried out in two stages, with the Hyderabad-Multan line being under the second package and the Karachi-Hyderabad line under the first.
It is impossible to exaggerate the ML-1 Railway Project’s economic impact. It is anticipated to revolutionize Pakistan’s transportation industry by offering a quicker and more dependable way to move cargo. This will lessen the need for road transportation and lower logistical costs, increasing the competitiveness of Pakistani exports on the international market.
Additionally, the project will solidify Pakistan’s standing as a major regional connectivity actor. After it is finished, the ML-1 Railway will be a vital conduit for trade and better access to Central Asia between China, Pakistan, and other nations in the area.
China and Pakistan have close diplomatic and economic connections, as evidenced by their decision to jointly fund the ML-1 Railway Project.
