China to Fund 85% Karakoram Highway Realignment
Pakistan has confirmed that China will fund 85% of the Karakoram Highway realignment, ensuring uninterrupted connectivity between the two countries. The project became necessary after sections of the road were submerged by the Diamer-Basha Dam. According to Planning Minister Ahsan Iqbal, bidding will begin in phases, starting with the 82-kilometre stretch most affected.
ML-1 Railway Project with Multilateral Support
Alongside the highway project, both countries agreed to move forward with the $7 billion Main Line-1 (ML-1) railway upgrade. Instead of concessional loans from Beijing, financing will now come through multilateral lenders such as the Asian Development Bank and the Asian Infrastructure Investment Bank.
14th JCC Meeting Aligns CPEC with URAAN 5Es
The 14th Joint Cooperation Committee (JCC) meeting in Beijing was co-chaired by China’s NDRC Vice Chairman Zhou Haibing and Pakistan’s Ahsan Iqbal. The session focused on aligning CPEC’s “Five Corridors” with Pakistan’s URAAN 5Es framework. This includes priorities such as industrialisation, digital transformation, energy cooperation, and climate resilience.
Zardari’s Visit Boosts Bilateral Momentum
President Asif Ali Zardari’s visit to China gave fresh momentum to cooperation. Both sides signed MoUs in agriculture, energy, waste management, and education. Senator Saleem Mandviwalla noted that Zardari became the first Pakistani head of state to tour China’s AVIC aerospace facilities. He received briefings on advanced platforms, including the J-10 and J-20 stealth fighters, UAVs, and command-and-control technologies. This may open the door for future defence cooperation.
Expanding Business-to-Business Partnerships
Zardari’s trip also highlighted private-sector engagement. New agreements include a coal gasification and fertiliser plant in Thar, waste recycling projects, and the development of textile and industrial hubs. His visit to Kashgar marked a first for any Pakistani president and strengthened provincial-level cooperation.
CPEC Phase-II: Focus on Connectivity and Growth
Both the JCC outcomes and Zardari’s visit underlined that CPEC Phase-II will go beyond government projects. The next stage will prioritise private investment, exports, and industrial relocation from China. Officials emphasised that early execution of the China-funded Karakoram Highway realignment and ML-1 upgrades will deliver lasting economic and strategic gains, reinforcing Pakistan-China ties as “all-weather partners in high-quality development.”
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