The Asian Development Bank (ADB) has stepped in to fund upgrades to a key section of Pakistan’s railway network after repeated delays in Chinese financing put a strategic mining-linked project at risk.

 

According to reports, the ADB has entered advanced talks to arrange $2 billion in financing for the modernisation of a 500km stretch of railway that was previously included in a Chinese-backed plan. The proposed revamp aims to modernise tracks and bridges from Karachi to Rohri near Sukkur.

 

As per the details, this project will allow trains on tracks to operate at higher speeds. Reports indicate that the upgraded line will connect to a branch coming from the Reko Diq mining area at Rohri and will transport copper concentrate to port facilities.

 

For reference, copper concentrate is a semi-processed form of copper ore, typically containing 20 to 30 percent copper. Reports indicate that the project has become urgent because the line is essential for carrying copper ore away from the Reko Diq mine.

 

It merits a mention that earlier this week, the ADB committed a staggering $410 million in financing for the Reko Diq project, under development by Canada’s Barrick Mining Corp. Reports claim that the ADB’s president is expected to arrive in Islamabad next week for further talks.

 

Reko Diq project director Tim Cribb disclosed to a leading international news outlet that Barrick and the federal government will jointly pursue financing for the upgrade of the western branch linking the mine to Rohri. Data from reports indicates that production at Reko Diq is scheduled for 2028, with annual output projected to sit at around 200,000 metric tons of copper concentrate.

 

As one of the world’s largest undeveloped copper deposits, the mine represents Pakistan’s biggest foreign investment in recent years. A key government official warned that without railway upgrades, the country will face a crisis as it will face difficulties in transporting output from Reko Diq.

 

Additionally, while referencing the Karachi-Rohri line, the government official in question also suggested that “the exhausted line will come under even more pressure” without upgrades. 

 

As per reports, neither China’s foreign ministry nor Pakistan’s railway ministry provided an immediate comment on these developments. It merits a mention that the ADB has not confirmed the $2 billion financing package yet, which was initially reported upon by a leading international news outlet. However, the ADB acknowledged that discussions with Pakistan on railway sector development remain ongoing.

 

The regional lender stressed that “any potential ADB assistance would be subject to comprehensive due diligence and consideration under ADB’s policies and procedures before any commitment is made,”.