Pakistan seeks $9bn Chinese loan for ML-1, commits to border fencing.

ISLAMABAD -- Federal Minister for Planning, Development and Reform Makhdum Khusro Bakhtyar and Vice Chairman NDRC Ning Jizhe are seen in this group photo along with other delegates during the 9th Joint Cooperation Committee Meeting.

ISLAMABAD: Committing complete fencing of Afghan and Iran borders on priority to ensure peace and security, Pakistan on Tuesday asked China to finance $9 billion Main Railway Line (ML-1) and other road and infrastructure projects to expand the China-Pakistan Economic Corridor (CPEC).

At the conclusion of ninth Joint Cooperation Committee (JCC) meeting of CPEC here, the two sides also approved Gwadar Smart City Master Plan and signed two memorandums of understanding (MoUs) for cooperation in the field of health and trade. They also signed minutes of the meeting and inaugurated 392km Multan-Sukkur Motorway completed with Chinese funding of Rs294bn.

The JCC was co-chaired by Planning Minister Makhdum Khusro Bakhtyar and China's National Development and Reform Commission (NDRC) Vice Chairman Ning Jizhe. It formed a joint project financing group to formally engage in project financing arrangements on ML-1, said Bakhtyar, adding the groundbreaking ceremony for the multi-billion dollar plan was targeted within the next six months.

He said the government had decided to take ML-1 loan and ensure its repayment because of the limitations of Pakistan Railways. Responding to a question, he said a project loan would not affect the country's debt-to-GDP situation because it would be completed in about five-six years and contribute also to the GDP size as well.

Responding to another question, Bakhtyar said the two sides also decided to hold discussions on modalities of Chinese financing in Renminbi as it was one of the six major currencies in the International Monetary Fund basket. For this, an expert group at the central bank level and other experts would examine as to how to move forward.

He lamented that CPEC was previously viewed as replacement to Public Sector Development Programme while its true potential lied in the economic expansion and industrial growth for which the new government was setting a fresh direction.

The minister claimed China would also provide Rs70bn financing for Zhob-DI Khan Motorway to connect IslamAabad-Quetta through motorway while Pakistan would finance Sukkur-Hyderabad motorway through public-private financing where Chinese would be welcome to participate through open competition.

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