Pakistan Seeks $7 Billion ADB Loan for ML-I Railway Line Upgrade
Pakistan has turned to the Asian Development Bank for a $7 billion loan to upgrade the Mainline-I railway project after China declined support. The ADB may offer 60% funding for sections of the project, which is considered crucial for the country's infrastructure and economic growth.
- Country:
- Pakistan
In a significant financial move, Pakistan seeks a $7 billion loan from the Asian Development Bank (ADB) to upgrade its Mainline-I (ML-I) railway network after China opted out from the previously agreed financial commitment.
The railway line, stretching between Peshawar and Karachi, has been stalled due to funding challenges. Initially, Islamabad anticipated China would cover 85% of the project's cost, but with Beijing reneging, Pakistan is shifting to alternative lenders, including the ADB and AIIB.
The ADB is exploring financing 60% of the critical Karachi-Rohri section with the AIIB. They demand comprehensive design documents to ascertain the exact funding needs. Additionally, the ADB plans to inject $10 million into a Project Readiness Facility to verify the project's feasibility ahead of approving heavier loans.
(With inputs from agencies.)
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