ADB to Fund Pakistan Rail Upgrade Amid China Financing Halt

The Asian Development Bank (ADB) will back Pakistan's rail upgrade as China's financing stalls. The ADB will provide financial support for the project, which aims to modernize Pakistan's rail network. The upgrade will improve the country's transportation infrastructure and boost economic growth. The project is expected to create jobs and stimulate economic activity in the region.

The Asian Development Bank (ADB) has agreed to fund a significant upgrade to Pakistan's railway system, stepping in to replace China as the financier following prolonged delays. The project aims to modernize the country's rail network, improve transportation infrastructure, and boost economic growth.

The ADB will lead a $2 billion consortium to finance the upgrade of a 500-km stretch of the railway line from Karachi to Rohri in the country's south. This section of the railway is crucial for transporting copper ore from the Reko Diq mine, currently being developed by Canada's Barrick Mining Corp. The upgrade is expected to enhance the efficiency of the rail line, allowing diesel trains to run faster and facilitating the evacuation of copper concentrate to the port [1].

The ADB's involvement comes at a critical time for Pakistan, as the country has been struggling to secure financing for the rail upgrades from China. The delay in securing funds from Beijing has threatened to strain a strategic mining project. The ADB's support will not only ensure the timely completion of the rail upgrade but also alleviate the pressure on Pakistan's railway system, which has been under significant strain due to the increasing demand for copper ore from the Reko Diq mine [2].

The ADB's decision to back the project aligns with its broader commitment to Pakistan's economic development and infrastructure modernization. The bank's president is scheduled to visit Islamabad next week to discuss the project further. The ADB has also announced a separate $410 million financing package for the Reko Diq mine itself, underscoring its support for Pakistan's mining sector [3].

The rail upgrade is part of a broader $60 billion Chinese investment program in Pakistan, known as the China-Pakistan Economic Corridor (CPEC). Despite the delays in financing, Pakistan and China have maintained their strategic partnership, with both sides seeking to deepen ties and move forward with the CPEC initiative [1].

The project is expected to create jobs and stimulate economic activity in the region, contributing to Pakistan's overall economic growth. The ADB's involvement is a significant step forward in ensuring the successful completion of the rail upgrade and the smooth operation of the Reko Diq mine.

References:
[1] https://www.yahoo.com/news/articles/exclusive-adb-back-pakistan-rail-130644304.html
[2] https://www.canadianminingjournal.com/news/barricks-reko-diq-in-line-for-410m-adb-backing/
[3] https://www.reuters.com/sustainability/boards-policy-regulation/adb-back-pakistan-rail-upgrade-china-financing-stalls-sources-say-2025-08-22/