Islamabad: As per the latest updates, Pakistan aims to enter a new phase of agreements with China for Phase I and Phase II of the Mainline One (ML-1) project. This project is one of the plans of the China-Pakistan Economic Corridor (CPEC), specifically aimed at strengthening the connection between the two countries.
Read More: CDA Mega Projects to be Completed on Time
As per the news, Pakistan and China decided to not sign the whole $6.8 billion ML-1 agreement at once. As an alternative, the two countries have split one agreement into separate ones, which include Phase I and Phase II of the railway project.
Coming to the Phase-I of the ML-1, the project includes the upgradation of the railway line from Karachi to Hyderabad and Hyderabad to Multan. The Phase II, however, consists of the construction of the line from Multan to Peshawar.
This month will follow the agreement’s financing terms and legal conditions with Chinese officials. Following the conclusion of Phase II, a feasibility study will be carried out. Moreover, China will provide long-term funding for the ML-1 project’s first phase. For the project, Pakistan is also looking to China for lower-interest loans.
Earlier, Pakistan had a fruitful discussion with China about the ground realities of finance and what it will cost to cover the project. The whole $6.8 billion amount was in discussion, but the two parties could not agree on any mutual lump-sum deal.
Read More: Mega projects launched to ease Islamabad traffic: PTCL Chowk and Serena Interchange
Specifically talking about ML-1, ML-1 is a huge railway infrastructure project in Pakistan that is part of CPEC. It entails modernizing and extending Pakistan’s current railway line, which is roughly 1,872 kilometers from Karachi to Peshawar.
The project’s goal is to increase the speed, capacity, and safety of Pakistan’s rail system. After the completion of this project, Pakistan’s economy would significantly boost and travel time would be cut down to a great extent, enabling quicker freight transportation, and fostering regional integration.
For more information, visit Multiworks.