Archive · 3 Sep 2025
Pakistan Seeks ADB Loan for CPEC Project After China Shift
Pakistan is trying to get money from the Asian Development Bank (ADB) to upgrade a railway line.
This railway is a big part of the China-Pakistan Economic Corridor (CPEC), which is a project to improve trade.
China used to be the main source of money for this project, but now they're not as involved.
The ADB is considering giving Pakistan a loan, but the interest rates might be higher than what they got from China before.
China now wants other groups to help fund the project.
Pakistan is seeking ADB financing for the Karachi-Rohri railway project.
The project is a key part of the China-Pakistan Economic Corridor (CPEC).
China has stepped back from sole financing of the project.
ADB is considering a $2 billion loan.
Loan terms are expected to have higher interest rates than previous CPEC funding.
- Who
- Pakistan, China, and the Asian Development Bank (ADB)
- What
- Pakistan is seeking an ADB loan for a CPEC project after China's shift.
- When
- Discussions ongoing; ADB team inspected in July.
- Where
- Pakistan
- Why
- China's hesitation in funding the project.
China's Strategic Shift
Pakistan's Funding Needs
Funding Source
China's Strategic Shift
China's initial exclusive funding model for CPEC projects
Pakistan's Funding Needs
Pakistan's need for alternative financing sources.
Project Control
China's Strategic Shift
China's potential concerns about project control with third-party involvement.
Pakistan's Funding Needs
Pakistan's need to ensure the project's completion regardless of specific funding terms.
- Project
- Karachi-Rohri railway upgrade (ML-1)
- Total Project Cost
- $6.7 billion
- ADB Loan Amount
- $2 billion (in preparation)
- Railway Length
- 1,726-kilometer corridor
- CPEC Component
- Backbone of China-Pakistan Economic Corridor
- Previous Funding
- Primarily from China
- Chinese Stance Shift
- Encouraging third-party involvement in CPEC projects
Sources
China Seeks ‘New Security Arrangements’ In Pakistan As Prerequisite For CPEC Expansion | News18
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