CPEC worth $51 bn after China, ADB approve new loans

New loans worth $8 billion from Beijing and the Asian Development Bank (ADB) to upgrade the main railway line from Karachi to Peshawar has increased the size of the China-Pakistan Economic Corridor (CPEC) to over $51.5 billion, media reports said on Friday.

Addressing a news briefing upon his return from a week-long visit to China, Minister for Planning, Development and Reforms Ahsan Iqbal said Beijing has agreed to provide Pakistan with a $5.5bn concessional loan to upgrade and modernise the Karachi-Lahore main railway line called ML-1, Dawn news reported.

In addition, ADB will extend financing of $2.5 billion for the Lahore-Peshawar railway track, he said.

"Both loans will carry less than 2 per cent interest rate. Both are concessional loans," Iqbal added.

According to the original $46 billion outlay for the CPEC, about $3.56 billion was secured for the railway network which has now been increased to $8 billion.

Iqbal also said that both sides have agreed to convene the 6th Joint Cooperation Council (JCC) of the countries in November.

This move comes amidst growing tensions between India and Pakistan after the September 18 Uri attack and even as India is trying to isolate the nation on the world stage.

Recently Afghanistan, Bangladesh and Bhutan expressed their solidarity with India and pulled out of the Saarc Summit which was to be held in November.

The Karachi-Peshawar Railway Line, also referred to as Main Line 1 or ML-1, is one of four main railway lines in Pakistan. The 1,687 km railway line consists of 184 stations from Kiamari to Peshawar Cantonment.

The CPEC is a collection of projects that intends to rapidly expand and upgrade Pakistani infrastructure as well as broaden economic links between Pakistan and China.

Much of the corridor is in the restive province of Balochistan, but a part of it is in the Gilgit-Baltistan region of Pakistan-administered Kashmir that India claims.

--IANS

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