China Seeks Additional Guarantees for $6B New Loan

ISLAMABAD: China has sought additional guarantees before sanctioning $6 billion loan for Main Line-1 (ML-1) project due to weakening financial position of Pakistan and also proposed a mix of commercial and concessional loan against Islamabad’s desire to secure the cheapest lending.

The issue of additional guarantees was raised during the third joint ML-1 financing committee meeting, held ten days ago, official documents said.

However, a senior Pakistani official involved in negotiations said that China did raise the additional guarantees issue during meeting but it did not make it part of the draft of the minutes shared with Pakistan.

The ML-1 project includes dualisation and upgrading of the 1,872km railway track from Peshawar to Karachi and is a major milestone for the second phase of China-Pakistan Economic Corridor (CPEC). Read more…..


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