In a move that could reshape Pakistan’s decades-old dependency on Chinese financing, Islamabad is now turning to the Asian Development Bank (ADB) for a $2 billion loan to upgrade a key segment of its railway network—part of a flagship China-Pakistan Economic Corridor (CPEC) project that Beijing has quietly stepped back from.
The Karachi–Rohri section of the Main Line-1 (ML-1) railway—once touted as the crown jewel of CPEC—is now set to be funded by a multilateral institution, marking a decisive break from China’s dominant role in Pakistan’s infrastructure. The 1,800 km ML-1 line was originally envisioned as China’s largest investment under its $60 billion Belt and Road Initiative in Pakistan. But nearly a decade of stalled talks, Pakistan’s debt distress, and Beijing’s changing risk appetite have frozen momentum.
Sources say the shift to ADB financing was “squared with China,” but the optics are stark: for the first time, a Western-aligned lender is taking the lead on a core CPEC asset.
China’s decision to pull back reportedly stems from growing doubts over Pakistan’s repayment capacity. With repeated IMF bailouts and mounting dues to Chinese power firms, Beijing appears less willing to fund big-ticket infrastructure in high-risk countries.
The fallout is geopolitical as much as financial. Beijing’s retreat exposes the fragility of Islamabad’s over-reliance on a single strategic partner. It also signals China’s own recalibration, as its domestic economy faces pressure and its global lending slows.
Pakistan’s pivot comes amid renewed U.S. interest in its mineral wealth, particularly the massive Reko Diq copper-gold project in Balochistan, now led by Barrick Gold. ADB has already pledged $410 million toward supporting Reko Diq-related infrastructure. The ML-1 upgrade is essential to transporting ore from the mine to ports—a key driver behind Pakistan’s urgency.
Islamabad is walking a diplomatic tightrope. Army chief Gen. Asim Munir recently stated, “We will not sacrifice one friend for the other,” reflecting Pakistan’s delicate balancing act between China and Western partners.
Whether this signals a deeper reorientation or just a stopgap remains to be seen—but for now, Pakistan’s infrastructure future looks less China-led and more multilateral.