Pakistan asks China for $ 2.7 billion loan according to to reports in Express grandstand Newspaper
Funding will be formally requested in a letter mailed this week. It will be used to upgrade and “dualize” the 1,872 km long line, one of the four most important railway lines in Pakistan.
According to the newspaper, the Treasury Department has decided not to pay the full 6.1 billion
The Ministry commented: “It is the responsibility of the Treasury to ensure continued and improved debt sustainability and the Treasury has advised the bankability of the project in this regard.”
A map of the Pakistani railway network with the Karachi-Peshawar in black (Adnanrail / CC BY-SA 3.0)
Government sources told the newspaper that Pakistan was hoping to negotiate a 1% interest rate on the loan, but that China has not yet officially agreed to it.
Work on the first phase of the Mainline 1 project is scheduled to begin in January and last through December 2024. They include the construction of 527 km of track between Peshawar, Rawalpindi and Lahore at the northern end of the line. No contractors were selected for the project.
Currently, the journey between Karachi and Peshawar takes around 22 hours. As a result of the expansion, the average speed of the route will be increased from 105 km / h to 160 km / h and equipped with a modern signaling and guidance system.
In May 2017, during a visit to China by then Pakistani Prime Minister Nawaz Sharif, a framework agreement for 8 billion US dollars was signed.
Above: Rahim Yar Khan train station, one of 184 along the Karachi-Peshawar line (Safeer Ahmad /CC BY-SA 4.0)ONE