Pakistan And China Form $7 Billion Financing Consortium For CPEC Phase II, Agree On Four-Year Action Plan

Pakistan and China have taken a major step forward in the second phase of the China-Pakistan Economic Corridor (CPEC), announcing the creation of a consortium to finance a $7 billion railway project alongside a comprehensive four-year action plan (2025–29).

At a press conference in Islamabad, Planning and Development Minister Ahsan Iqbal confirmed that during Prime Minister Shehbaz Sharif’s recent visit to Beijing, both sides agreed to seek joint financing for the 1,700 km Karachi–Peshawar railway line, reported PTI.

The consortium will include China, Pakistan, the Asian Development Bank (ADB), and the Asian Infrastructure Investment Bank (AIIB). Negotiations with multiple financiers would be concluded within a month, Iqbal said, adding that China had also pledged funding for the Karakoram Highway.

The second phase of CPEC, described by officials as a move towards building a “China-Pakistan community with a shared future”, will run from 2025 to 2029. The roadmap aims to deepen political trust, expand trade, enhance security cooperation, and strengthen people-to-people links.

According to The Dawn, the plan seeks to align the Belt and Road Initiative (BRI) with Pakistan’s 5Es Framework while balancing “large-scale landmark projects” with “small and beautiful” initiatives focused on livelihoods.

CPEC, which connects China’s Xinjiang region with Pakistan’s Gwadar port in Balochistan, remains controversial. India has consistently opposed the project, citing its route through Pakistan-occupied Kashmir (PoK).

Despite these objections, CPEC continues to be promoted as the flagship of Beijing’s wider BRI strategy, which has seen China invest billions in infrastructure across the globe as part of its effort to expand overseas influence.

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