Pakistan has secured $8.5 billion in investment agreements with China covering infrastructure, energy, transport and ML-1 railway improvements while the Asian Development Bank has agreed to fund a critical rail upgrade segment, accelerating national logistics plans.
Pakistan’s Prime Minister, during his Beijing visit, concluded accords with China totaling $8.5 billion, spanning infrastructure, agriculture, renewable energy, electric vehicles and steel industries.
This package includes support for the Main Line-1 (ML-1) railway and forms a core pillar of the newly announced second phase of the China–Pakistan Economic Corridor (CPEC), boosting long-term connectivity and growth.
Amid delays in securing full-scale Chinese financing, the Asian Development Bank (ADB) has agreed to back a $2 billion upgrade of a 500-kilometre stretch from Karachi to Rohri. This segment is critical, serving the Reko Diq mining region in Balochistan, which is earmarked to start operations in 2028. ADB has already provided $410 million for the Reko Diq project and is coordinating with Pakistan to ensure logistics support via rail.
For everyday Pakistanis, this translates into smoother and more reliable travel and freight movement across key urban centres. Modern rail infrastructure helps drive down costs and can lower prices of transported goods.
Securing ADB financing signals strategic diversification of Pakistan’s funding sources. Relying not just on China, but also on multilateral institutions, enhances fiscal resilience and negotiation leverage.
Moreover, improved railway logistics specifically for Reko Diq could catalyze economic activity and job creation in Balochistan, a historically underserved region.
