Islamabad, September 9: Pakistan and China have agreed to form a consortium of bilateral and multilateral partners to finance the $7 billion Karachi-Peshawar railway project, marking a major milestone in the second phase of the China-Pakistan Economic Corridor (CPEC).
Planning and Development Minister Ahsan Iqbal announced the agreement at a press conference, confirming that the consortium will include China, Pakistan, the Asian Development Bank (ADB), and the Asian Infrastructure Investment Bank (AIIB).
The financing deal comes after Prime Minister Shehbaz Sharif’s recent visit to China, during which both sides also approved a four-year action plan (2025–29) to accelerate CPEC’s second phase.
Karachi-Peshawar Railway Line: A Flagship Project
The 1,700-km Karachi-Peshawar railway line, also known as Main Line-1 (ML-1), is considered a flagship project under CPEC, aimed at modernizing Pakistan’s rail infrastructure.
Once completed, the project will:
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Upgrade the entire track to high-speed, dual-line standards.
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Increase train speeds to 160 km/h.
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Improve freight capacity and passenger services between Pakistan’s two key cities.
Broader CPEC Context
CPEC, launched in 2015, has faced criticism over debt concerns and delayed projects but remains a central pillar of China’s Belt and Road Initiative (BRI) in South Asia.
The second phase aims to focus on:
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Industrial cooperation
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Agriculture modernization
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Science and technology partnerships
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Energy diversification
The railway project is expected to boost connectivity, trade, and economic growth, not just within Pakistan but across the entire region.