In a setback, Pakistan makes major cut on mega CPEC project over IMF pressure
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According to sources, under pressure from the International Monetary Fund (IMF), Pakistan has reduced the cost of its ML-1 railway project, which aims to establish modern railway lines. The project's cost has been reduced to less than $3 billion after expressing reservations on Chinese loans for the ML-1 railway project.
Instead of the initially estimated $9 billion, the project from Peshawar to Karachi ML-1 will now be completed at a cost of around $6 billion.
The Peshawar to Karachi railway project, spanning 1750 kilometers, will be completed in three phases, with Phase 1 costing $2.7 billion, Phase 2 at $2.6 billion, and Phase 3 at $1.4 billion.
Sources have reported that the operational speed of the trains has been reduced to 140 kilometers per hour instead of the initially planned 160 kilometers per hour. Instead of building new bridges, only specific locations will be graded upon project completion. This is expected to increase the number of new trains in the country to 134.
It is also possible that the revised PC-1 and design for the ML-1 project could be approved soon. Progress in project financing is expected during the Prime Minister's visit to China.
