Published on, Sept. 27 -- September 27, 2025 12:46 PM

Pakistan announced on Friday that China will provide 85% financing for the realignment of the Karakoram Highway (KKH) while supporting Islamabad's plan to seek funding from multilateral lenders for the Main Line-1 (ML-1) railway project, after Beijing declined to extend concessional loans.

China has consistently urged Pakistan to focus on debt sustainability and avoid further accumulation of sovereign debt. However, as a special case, Beijing agreed to finance the KKH realignment to ensure uninterrupted road connectivity between the two countries under extreme weather conditions.

At the 14th Joint Cooperation Committee (JCC) meeting in Beijing, co-chaired by China's National Develop...