China has agreed to provide loan for up-gradation of ML-1 rail that will run from Karachi to Peshawar, said a government official, days after Pakistani and Chinese authorities agreed to include three Sindh projects in the multi-billion economic corridor project

“China has agreed to provide loan for gradation of ML-1 on most favourable terms,” said Minister for Railways Khawaja Saad Rafique. He said that a working group would begin negotiations on the project by the midst of this month.

Three other projects, he said, including Karachi Circular, Peshawar Mass Transit and Quetta Mass Transit projects, have also been included in the China-Pakistan Economic Corridor (CPEC) project.

The rail projects, which are some of the major components of the $55-billion energy and infrastructure project, are being overseen by the Pakistan Railways.