Pakistan on November 13, said, “It will ask for $2.7 billion in loan from China to fund the construction of Package-I of Mainline-1 project of China Pakistan Economic Corridor (CPEC)”
Quoting to the sources familiar with the development, the Pakistan based newspaper The Express Tribune in its report said, “The Sixth meeting of financing committee in a meeting held on Friday, on ML-1 project has decided that Pakistan would initially request China to sanction $2.7 billion in loan out of the estimated Chinese financing of about $6.1 billion.”
“The ML-1 project includes dualization and upgrading of the 1,872 KM railway track from Peshawar to Karachi and in a major milestone for the second phase of CPEC,” The reported said.
“The Ministry of Railways was in favor to seek full financing of $6.1 billion, but it was decided to seek the loan in three tranches due to the loan sustainability concerns,” The report added.
Speaking on the development, Kamran Afzal, Spokesperson for the Ministry of Finance said, “It is the responsibility of the Ministry of Finance to ensure continued and improved debt sustainability and advice of the Ministry of Finance on bankability (of the project) has been given in this context.”
“The advice given by the Ministry of Finance will improve project feasibility,” Afzal added.
The Ministry of Economic Affairs has been directed to formally send the Letter of Intent to China next week as Beijing is expected to finalize its next year’s financing plans by the end of the current month.