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Pakistan Seeks $2 Billion ADB Loan for Key Railway Project

9/6/2025

Summary

Story summary

Pakistan seeks a $2 billion loan from the Asian Development Bank (ADB) for the Karachi-Rohri segment of the Main Line-1 (ML-1) railway after China withdrew funding.
The ML-1 project costs $6.7 billion and is part of the $50 billion China-Pakistan Economic Corridor (CPEC).
China's withdrawal relates to Pakistan's $1.5 billion debt to Chinese power producers and rising security risks.
If approved, this loan would be the first multilateral funding for a core CPEC project.
ADB's involvement may enforce stricter procurement processes, potentially redefining infrastructure financing in Pakistan.

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Story summary

Pakistan seeks a $2 billion loan from the Asian Development Bank (ADB) for the Karachi-Rohri segment of the Main Line-1 (ML-1) railway after China withdrew funding.
The ML-1 project costs $6.7 billion and is part of the $50 billion China-Pakistan Economic Corridor (CPEC).
China's withdrawal relates to Pakistan's $1.5 billion debt to Chinese power producers and rising security risks.
If approved, this loan would be the first multilateral funding for a core CPEC project.
ADB's involvement may enforce stricter procurement processes, potentially redefining infrastructure financing in Pakistan.