KARACHI: The government would float tenders for the largest and costliest Main Line 1 (ML1) railway project under the China-Pakistan Economic Corridor (CPEC) infrastructure development plan by the second week of the next month, Pakistan’s Railways Minister Sheikh Rashid Ahmad told Arab News while trying to dispel the impression that the project had been delayed.
“There is no problem at all … and the tender will be floated by 12th or 15th November,” he said, adding that “the project will hopefully start by the end of December.”
ML-1 is likely to cost $6.8 billion, and 90 percent of the financing will come from China’s Government Concessional Loan scheme. The project will upgrade and dualize the existing railway tracks connecting the port city of Karachi in the southeast to Peshawar in the northwest.
The railways minister also denied reports in the international media that the project had been delayed due to the interest rate disagreement between the two countries.
“The interest rate has not been finalized yet,” Rashid said. “Talks with them [Chinese] are underway, and we will listen to them and accept what they offer us.”
According to independent experts, however, the situation may be more complex.
“This is a huge project — even larger than the size of the IMF program which Pakistan cannot afford — and the Chinese are insisting to extend the loan on commercial terms,” Khurram Hussain, business editor of Dawn newspaper, told Arab News. “The main thing is money. If you don’t have it, you can’t get it.”
However, Chairman of Pakistan-China Institute Mushahid Hussain Syed said that CPEC was perfectly “on track.”
“The ML-1 financing will be in RMB [renminbi, the official Chinese currency] and the project awaits a high-profile visit to move further,” he added. “The confusion was caused by the irresponsible statements from some ministers that were baseless and unwarranted.”
He confirmed that the country’s army chief had to play his role to ensure the smooth flow of CPEC projects.
“General Qamar Javed Bajwa had to intervene and now things are on track. CPEC is a national strategic project that is bigger than any party or province. So, all stakeholders — whether they are the armed forces, parliament, political parties or government — are on board,” he explained.
The railway minister told Arab News that the project would provide job opportunities to more than 150,000 people, adding that 90 percent of them would be Pakistanis while 10 percent would be Chinese nationals.
Pakistan to float tenders for $6.8 billion CPEC railway project in November
https://arab.news/vz2xq
Pakistan to float tenders for $6.8 billion CPEC railway project in November
- Interest rate for project financing is yet to be finalized with the Chinses government, says Sheikh Rashid Ahmad
- Independent experts say the Chinese want to extend the loan to Pakistan on commercial terms
Qatar, Pakistan resolve to boost strategic, economic cooperation at Doha talks
- Both countries urge dialogue on Afghanistan amid renewed border tensions between Islamabad and Kabul
- Discussions focus on bilateral trade and investment, energy, defense, manpower and labor and culture
ISLAMABAD: Pakistan and Qatar on Tuesday agreed to deepen their strategic and economic cooperation during high-level talks between Prime Minister Shehbaz Sharif and his Qatari counterpart Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani, Sharif’s office said.
Sharif visited Qatar along with a high-level delegation on the invitation of Qatari emir Sheikh Tamim bin Hamad Al Thani. The Pakistani premier also held meetings with Qatar’s trade and defense ministers to discuss cooperation in various domains.
The visit came at a time when Pakistan is seeking closer economic engagement with Gulf partners amid its broader push to stabilize the economy and attract investment, while maintaining security and defense cooperation with key regional states.
During their meeting in Doha, PM Sharif and Qatar’s Sheikh Mohammed discussed bilateral relations and exchanged views on regional and international developments, according to the Pakistan prime minister’s office.
“They reaffirmed the strong brotherly relations between Pakistan and Qatar and expressed satisfaction at the growing momentum in political, economic and institutional ties,” Sharif’s office said.
“Discussions focused on enhancing cooperation in the fields of trade and investment, energy, defense, manpower and labor and culture, with both sides stressing the importance of their task force to accelerate cooperation in all these areas.”
Pakistan and Qatar maintain strong trade and investment ties. In 2022, the office of Qatar’s emir said the Qatar Investment Authority planned to invest $3 billion in Pakistan, targeting sectors including transport, aviation, education, health, media, technology and labor.
Nearly 300,000 Pakistanis live and work in Qatar, according to Pakistan’s foreign office, with many employed in health, education, engineering and public services, as well as construction and transport. The two countries engage through forums such as the Bilateral Political Consultations and the Joint Ministerial Commission.
Sharif said he had productive discussions with Qatar’s emir, Sheikh Tamim bin Hamad Al Thani, on how the two sides could transform their brotherly ties into mutually beneficial economic relationships.
“We also took stock of the regional situation,” he said on X. “Pakistan and Qatar will continue to work together for peace and stability in the region and beyond.”
DIALOGUE WITH AFGHANISTAN
Earlier, Sharif and Qatar’s Deputy PM Sheikh Saoud Al-Thani discussed the situation in Afghanistan and called for dialogue to support regional stability.
The meeting took place amid renewed tensions after Islamabad carried out airstrikes last week on what it described as Tehreek-e-Taliban Pakistan (TTP) targets inside Afghanistan. Kabul said the strikes killed civilians and vowed to respond to what it called a violation of its sovereignty.
“Regional developments were also discussed, in particular the situation in Iran and Afghanistan,” Sharif’s office said in a statement. “Both sides emphasized the importance of dialogue, de-escalation and collective efforts to promote peace and stability in the region.”
This was the second time in less than six months that Pakistan conducted airstrikes in Afghanistan. The last strikes triggered heavy, weeklong clashes between the neighbors along their border before Qatar and Turkiye mediated a ceasefire between them in Oct. last year.
Separately, Sharif held meetings with Qatar’s State Minister for Trade Dr. Ahmed bin Mohammed Al-Sayed and a delegation of the Qatar Businessmen Association (QBA), highlighting Pakistan’s investment-friendly reforms.
He invited QBA members to explore opportunities in infrastructure, logistics, energy, agriculture, technology and export-oriented manufacturing, his office said.
