Finance: The hidden tax on progress

Pakistan and China have agreed to mobilise a $7 billion multi-party financing package for the long-delayed ML-1 rail project and mapped out a 2025–29 action plan under the China-Pakistan Economic Corridor. The agreement extends beyond railroads into highways, industry, agriculture, and livelihoods — signalling a deeper strategic partnership. According to a Dawn report, a pivotal follow-up meeting is set for Sept 26 in Beijing. The ML-1 project is vital for Pakistan’s economy but has been repeatedly delayed since 2017 due to Covid-19 disruptions, political turmoil, financing disputes, liquidity shortages and security risks for Chinese workers. Initially estimated at $9.85bn, the cost was rationalised to $7bn through a bilateral agreement in October 2023 to make it viable.