ISLAMABAD/BEIJING, SEPTEMBER 2025 — Pakistan and China are set to deepen their strategic partnership with the unveiling of the second phase of the China-Pakistan Economic Corridor (CPEC) and the formation of a consortium to finance a significant railway project. This development underscores the ongoing commitment to enhancing regional connectivity and economic integration under China's Belt and Road Initiative (BRI).

The core of this initiative involves a $7 billion railway project, specifically targeting the 1,700-kilometer Karachi-Peshawar railway line. To fund this ambitious undertaking, both nations have agreed to establish a consortium of financiers, which will include multilateral institutions such as the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB), alongside China and Pakistan. Assurances have also been made for financing the Karakoram Highway.

This phase of CPEC is guided by a comprehensive four-year action plan spanning from 2025 to 2029. The plan aims to foster a stronger "China-Pakistan community with a shared future" by enhancing political trust, expanding trade relations, bolstering security cooperation, and strengthening people-to-people exchanges. It also involves aligning the BRI with Pakistan's national development framework, focusing on both large-scale infrastructure and smaller livelihood projects.

According to Pakistan's Planning and Development Minister Ahsan Iqbal, negotiations with potential financiers are expected to be finalized within the month. While the CPEC project, particularly its passage through disputed territories, faces opposition from India, it remains a cornerstone of China's global infrastructure strategy.

The renewed focus on CPEC and the substantial investment in rail infrastructure signal a continued effort by Pakistan and China to bolster their economic and strategic ties, positioning the region for future development and connectivity.

Source: The Federal