Big Blow To Pakistan As This Country Exits Its Biggest Project, Reason Is…

Pakistan has turned to the Asian Development Bank (ADB) to finance a major railway upgrade that was once the centerpiece of the China-Pakistan Economic Corridor (CPEC).

The country is seeking a $2 billion loan from the ADB to modernise the Karachi–Rohri section of the Main Line-1 (ML-1) railway, after China stepped back from funding the project, according to a Economic Times report.

The ML-1 project, stretching 1,800 kilometers from Karachi to Peshawar, was described as the largest and most important part of CPEC, under which China had pledged about $60 billion for infrastructure and energy projects in Pakistan.

However, despite years of talks, financing never took off. This marks the first time a multilateral lender, instead of China, will lead funding for a flagship CPEC project.

China’s hesitation is linked to Pakistan’s weak financial position and its struggles to repay existing debts. Analysts also point to Beijing’s broader shift away from risky overseas investments as its own economy slows.

The decision has both financial and geopolitical consequences. China’s decision shows that even its strong ties with Pakistan have limits when money is at stake. It also highlights Pakistan’s growing need to diversify partnerships and not rely only on China.

Upgrading ML-1 is also critical for Pakistan’s mineral future. The Reko Diq copper and gold mine in Balochistan, one of the world’s largest untapped reserves, will require a modern railway system to transport heavy cargo to ports. Without it, Pakistan risks losing out on major export revenues. The ADB has already pledged $410 million toward the Reko Diq project.

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