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$3.5b Chinese investment for railways hangs in balance

Islamabad Amid rumors of change in original route of Pakistan-China Economic Corridor (PCEC) due to security reasons the future of feasibility assessment for 3.5 billion dollar investment by China to rehabilitate and replace railways tracks from Karachi to Peshawar now also hangs in balance, the sources told The News here

By Noor Aftab
February 20, 2015
Islamabad
Amid rumors of change in original route of Pakistan-China Economic Corridor (PCEC) due to security reasons the future of feasibility assessment for 3.5 billion dollar investment by China to rehabilitate and replace railways tracks from Karachi to Peshawar now also hangs in balance, the sources told The News here on Wednesday.
The sources said Pakistan and China developed understanding last year to strengthen the railway network especially from Peshawar to Karachi as part of the PCEC and a high level Chinese delegation also visited in October 2014 to assess the feasibility of the plan.
"Though no Memorandum of Understanding (MoU) was signed by Pakistan and China but both the countries at that time were agreed that a feasibility assessment for Chinese investment to upgrade the railway network would be completed till February 2015," the sources said.
The sources claimed that now route of PCEC runs from Khunjerab Pass via Sost, Attabad Lake, Gilgit, Railkot, Chilas, Mansehra, Rawalpindi, Lahore, Faisalabad, Multan, Rahim Yar Khan, Sukkur, Khuzdar, Turbat to Gwadar.
They said the Chinese envoys in the recent past time and again raised their concerns over security situation in Balochistan in the context of construction of PCEC and also discussed alternative strategies in case the security situation never improved in restive areas of Balochistan.
According to official statistics from January 2007 to January 2015, 1,060 terrorist attacks-that is 23 percent of the total reported from Balochistan-occurred in Awaran, Gwadar, Kech, Khuzdar, Lasbela, and Panjgur districts, which are on the route of the PCEC.
The sources said now Pakistan and China would reconsider the requirements and may make new coordinated plan to upgrade railway network with more focus on areas coming across the route of PCEC that is being dubbed as 'game changer' in the region.
They said Pakistan Railways is currently working on some mega projects for upgradation of the railway tracks but all these projects are being completed with the financial help of the federal government.
A senior official who was not authorised to talk to media stated on condition of anonymity that Pakistan also made a formal request to China in early last year to provide interest free loans to finance rail upgrading network but the exact mode of financing by the Chinese side was not finalised and still both sides are considering different options, including soft loans with mark up of one to two percent to execute mega railway projects.
When contacted, spokesman of Pakistan Railways told The News that Chinese delegation visited Pakistan in last October and they also held negotiations with the Railways authorities but no MoU was signed for any development project.
"These kinds of visits are done on regular basis and often provide a strong basis for cooperation and coordination in various fields. At the moment no feasibility assessment for Chinese investment to upgrade rail network from Peshawar to Karachi is being carried out and nothing tangible can be said in this respect," he said.
To a question, he said Pakistan Railways is pursuing an ambitious development plan under which railway tracks across the country are being upgraded on fast track basis, adding "Our mission is to provide safe and fast railway network to serve the people and boost economic activities in the country."