Pakistan will soon discuss soft loan option with China: Railways Minister

Islamabad: Minister for Railways Khawaja Saad Rafique has said that Pakistan will soon discuss soft loan option with China during any upcoming high-level visit to Beijing.

Speaking in the Senate, he maintained that during the upcoming visit to China the government will try to ensure Chinese side that if Pakistan railway was given a loan on lowest markup with a reasonable grace time “then the railway department will be able to return the loan out of their own earnings.”

Regarding China-Pakistan Economic Corridor (CPEC)’s Main Line 1 (ML-1) project, the minister told the House that the standards of Pakistan Engineering Council (PEC) were followed however to restart the project of ML-1 is not that easy because the confidence of Chinese authorities was “shattered.”

“I met with Chinese ambassador along with Railway officials to convince them to restart the project. One of the issues of the Chinese side is that they want the deal to be made in research and development fund and not in US dollars,” Rafique informed.

Secondly, he added, “ Chinese investors are uncomfortable due to none payment of circular debts and they are seeking guarantees.”

About the 59.15 kilometer Peshawar-Landi Kotal railway track, Rafique said that the Torkham Track was historically very important and can only be used for tourism but for connectivity with Afghanistan this track may not be used in future.

“The track must be suitable for both Pakistan and Afghanistan for passengers and trade operation, the minister said adding that however, railway department is working on an alternate route,” the minister contended.

He argued that the ‘right of way’ is available and it would only be dedicated for tourism and Pakistan railway was ready to offer right of way to the provincial government of the Khyber Pakhtunkhaw.