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China to fund Pakistan Railways projects with $ 3.5b grant

China to fund Pakistan Railways projects with $ 3.5b grant

LAHORE: China will extend $ 3.5 billion funding to Pakistan Railways for repair and maintenance of its infrastructure from Karachi to Peshawar.

According to media reports, Chinese technical experts will gauge the areas of investment to properly spend $3.5 billion. For this purpose, the Chinese delegation would undertake a comprehensive survey of 1,400-km rail track. The survey would also cover 2,340 railway bridges and 11 tunnels from Karachi to Peshawar.

The team will prepare a report and submit it in February next year to the governments of China and Pakistan for further deliberation and reaching agreements.

The investment is a loan being given by China at a concessionary interest rate of 1.5% under the Pakistan-China Economic Corridor, sources said.

The loan will be released by the Export-Import Bank of China after receiving sovereign guarantees from the Pakistan government.