China's Xi, Pak PM Sharif agree to launch $10-bn railroad project

Chinese President Xi Jinping and Pakistani Prime Minister Shehbaz Sharif agreed in a meeting in Beijing to launch a high-speed rail project that could cost $9.85 billion, a move that comes as the world’s No. 2 economy moves to slow some of its lending due to growth concerns.

The two nations agreed to get started on the Main Line-1, according to a statement from Sharif’s office, which described it as “a project of strategic importance.” China will continue to support Pakistan as it tries to stabilise its financial situation, state media quoted President Xi Jinping. 

Pakistan had been struggling with a balance of payments crisis even before devastating floods hit the country this summer, causing it an estimated $30 billion or more in losses. Pakistan was expected to seek debt relief from China, particularly the rolling over of bilateral debt of around $23 billion.