The Asian Development Bank (ADB) will fund upgrades to part of Pakistan's railway system, replacing China, after prolonged delays in securing financing from Beijing threatened to put a strain on a strategic mining project, two sources said on Friday.
An extensive revamp of 1,800 -kilometres of railways has been the centrepiece of a $60 billion Chinese investment programme in Pakistan announced in 2015 as part of Beijing's Belt and Road Initiative (BRI) global infrastructure push.
The ADB is in advanced talks to lead the financing of a $2 billion upgrade of a 500-km stretch of the railway line from Karachi to Rohri in the country's south that had previously been part of the Chinese project, said two sources with direct knowledge of the discussions.
The upgrade has become urgent, they said, as it is needed to transport copper ore from the Reko Diq mine being developed by Canada's Barrick Mining Corp.
The ADB would not confirm the finance package. But it said Pakistan's government and the regional lender "have regular discussions on railway sector development".
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