ADB Takes Charge: Transforming Pakistan's Railways to Boost Mining Ambitions

The Asian Development Bank (ADB) will replace China in financing crucial upgrades to Pakistan's railway system, following lengthy delays in negotiations with Beijing. This decision aims to alleviate transport concerns for a major mining project, according to reliable sources.

The 1,800 km railway revamp was initially part of a $60 billion Chinese investment initiative under the Belt and Road Initiative. However, a decade of negotiations has not produced a feasible financial package. Meanwhile, Pakistan struggles with existing Chinese debt for other projects.

The ADB is in advanced discussions to finance a $2 billion upgrade of a 500-km railway segment from Karachi to Rohri. This development is urgent to transport copper ore from the Reko Diq mine, expected to commence production in 2028. The ADB recently announced $410 million in financing for the mine and is set to lead an international engineering consortium for the railway project.

(With inputs from agencies.)