On 6 September 2025, Pakistan confirmed that China has backed out from funding a major section of the Main Line-1 (ML-1) railway project, promised as the cornerstone of the China–Pakistan Economic Corridor (CPEC). Officials said the Karachi-Rohri stretch, once estimated at costing over $6 billion, will now be pursued with funding from the Asian Development Bank (ADB).
Analysts say the move is a sign of Beijing’s renegotiation of its overseas commitments in light of tighter economic conditions. Officials said that the project was still essential to modernize Pakistan’s rail infrastructure and improve trade connectivity. For Pakistan, this is both a challenge and an opportunity; a challenge as it forces the need to diversify sources of funding and a chance as it calls into question CPEC’s long-term viability.
