After a delay of whole three years to kick start its most ambitious rail line project, Pakistan appears to soften its terms for getting $6 billion loans from China. Pakistan has reportedly agreed to take $6 billion partially in Chinese yuan (RMB) as well as in USD, and also agreed to pay interest more than 1 percent. 

The government shared a revised loan term sheet with China for securing the loan for Mainline-I (ML-I) project of Pakistan Railways, officials in the Ministry of Railways were quoted as saying by Tribune. 

The ML-I project includes the dualization and upgrading of the 1,872km railway track from Peshawar to Karachi and is a major milestone for the second phase of CPEC.

Earlier, China offered the entire loan amount in RMB while Pakistan insisted on USD. However, loan negotiations have been going on for the last over one year with no conclusion. Pakistan wants more favorable terms for this loan. 

The Ministry of Railways has requested the Cabinet Committee on CPEC to make “intervention” for seeking firm Chinese commitment to a loan of $2.4 billion for package-I of the project and early finalization of loan terms, as per a report in Tribune. 

Federal Minister for Planning and CPEC Committee Chairman Asad Umar said that securing financing for the ML-1 project was the first priority of the government in the next meeting of CPEC Joint Cooperation Committee (JCC) - the highest bilateral decision-making body. However, they are yet to decide a date for the meeting.

Also on Thursday, Pakistan Army Chief Gen Qamar Javad Bajwa met the Chinese Ambassador to Pakistan Nong Rong. He appreciated the “unwavering support” of China to Pakistan at multiple international forums and efforts to enhance Pakistan’s security domains. 

A statement released by the ISPR said the army chief said the successful implementation of the China-Pakistan Economic corridor will bring prosperity to people of both countries.