Pakistan and China have agreed to establish a consortium of bilateral and multilateral partners to finance the $7 billion Mainline-1 (ML-1) railway project. The plan was finalised during Prime Minister Shehbaz Sharif’s recent visit to Beijing, where both sides also adopted a four-year roadmap (2025–29) for the second phase of the China-Pakistan Economic Corridor (CPEC).
Planning Minister Ahsan Iqbal told reporters that the financing consortium will include the Asian Development Bank (ADB), the Asian Infrastructure Investment Bank (AIIB), Pakistan and China. Negotiations with financiers are expected to conclude within a month. Beijing has also pledged funding for the Karakoram Highway alongside ML-1.
The four-year action plan aims to build a “China-Pakistan community with a shared future” by strengthening political trust, expanding trade, deepening security cooperation and enhancing people-to-people ties. Agriculture modernisation, industrialisation, and third-party participation will be central to CPEC’s second phase.
Both governments will accelerate industrial park development, encourage investment in special economic zones (SEZs), especially in Karachi and Islamabad, and promote collaboration in mining, agro-processing, animal husbandry, seed technology and drip irrigation. The plan will also align the Belt and Road Initiative (BRI) with Pakistan’s 5Es Framework, focusing on large-scale infrastructure and smaller livelihood projects, while ensuring development security.
The upcoming Joint Cooperation Council (JCC) meeting, scheduled for September 26 in Beijing, is expected to outline further details and commitments.
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