|Pakistan says Chinese govt to invest further $8.5b in rail, energy
Pakistan has secured an additional $8.5 billion of investment from China as part of the countries' joint energy, transport and infrastructure plan, Pakistan's Planning Minister Ahsan Iqbal said.
That is on top of the $46 billion China-Pakistan Economic Corridor (CPEC) project, which focuses on road building and energy infrastructure to end chronic power shortages in Pakistan and to link China's Northwest with the Gwadar Port on the Arabian Sea.
Some $4.5 billion of the additional investment will be spent on upgrading tracks and signaling on Pakistan's main railway line from Karachi to Peshawar and increasing the speed on the line, Iqbal told Reuters on Wednesday in an interview. Another $4 billion will go toward a liquefied natural gas terminal and transmission line, he added.
The IMF said in June that repayments and profit repatriation from large investments such as CPEC could add to Pakistan's medium- and long-term risks, predicting that the country's gross external financing needs would rise to $15.1 billion in 2018/2019 from $11.4 billion in the current financial year.