Chinese multinational offers to build crucial rail link
Karachi: A conglomerate of two leading Chinese construction companies, China Railway Engineering Corporation and Sinotec, has offered to construct the Gwadar-Khunjrab Rail Link at an estimated cost of Rs250 billion. This cost includes Rs160 billion for infrastructure and Rs90 billion for locomotives on electric traction. This investment is designed on a four-year, soft-loan term basis.
The offer was made to Minister for Railways Khwaja Sa’ad Rafique on behalf of the consortium in a detailed presentation carried out by Song Shuan Ping. The loan can be treated as a professional loan, commercial loan or a grant and will be payable in seven years.
Pointing out the strategic importance of Gwadar-Khunjrab Rail Link, Ping listed a number of benefits which could be availed once the project was operational. “The main aim of the link is to connect the Central Asian Republics with the Pakistan Railways Network,” said Ping.
“This will immensely improve trade relations between China and Pakistan.”
Ping further pointed out that this rail link can be used to supply oil from the Persian Gulf to Pakistan. Additionally, this network will bring tourism in Pakistan and create employment in Balochistan.