By ABDULLAH 
The Asian Development Bank (ADB) is stepping in to finance a critical upgrade to Pakistan’s railway network, a move that comes after years of stalled negotiations with China over funding. The $2 billion project will modernize a 500-kilometer stretch of railway from Karachi to Rohri, creating a vital link between the country’s largest port and the Reko Diq copper and gold mine.
The Reko Diq mine, located in Balochistan, is one of the world’s largest untapped copper and gold deposits. Jointly developed by Canada’s Barrick Mining, the federal government, and the provincial government of Balochistan, the project is expected to begin production in 2028. Once operational, it will produce an estimated 200,000 metric tons of copper concentrate annually.
Transporting this output to global markets requires a reliable and modern railway system. The current Karachi–Rohri line is outdated and under immense pressure, and experts warn that without upgrades, Pakistan could face a logistics bottleneck that threatens the success of the mine.
- Investment: $2 billion (led by ADB, with partners)
- Route: Karachi to Rohri (500 km)
- Scope: Modernization of tracks and bridges to allow faster diesel trains
- Connection: At Rohri, the line will meet a branch from Reko Diq, enabling direct copper transport to Karachi port
Alongside the rail project, the ADB has already approved $410 million in financing for the Reko Diq mine itself. This includes a $300 million loan and a $110 million credit guarantee for the Balochistan government, which owns a 25% equity stake in the mine.
The project was originally envisioned under the China–Pakistan Economic Corridor (CPEC), Beijing’s flagship infrastructure program in the country. But delays in financing and Pakistan’s rising debt obligations have slowed momentum. By stepping in, ADB is effectively replacing China in this critical segment of the project.
Officials, however, insist that the move will not strain Pakistan–China relations. “We would never do anything to jeopardize that relationship,” one senior government official said. Both sides continue to stress that China and Pakistan remain “ironclad friends.”
The Reko Diq mine represents Pakistan’s single largest foreign investment in recent decades, valued at around $9 billion. For a country struggling with over $130 billion in external debt, the mine is seen as a lifeline. Pakistan’s leadership hopes the project will attract more global investors to its mining sector, which is estimated to hold trillions of dollars in untapped critical minerals.
Beyond economic benefits, the project has geopolitical weight. With Western nations trying to diversify supply chains away from China, Pakistan’s copper and gold reserves have become increasingly attractive. ADB’s investment is also part of a broader shift by multilateral lenders toward financing critical minerals essential for the global energy transition.
Despite its promise, the Reko Diq project faces hurdles. Balochistan has long been a hotspot of separatist unrest, and militant groups frequently target infrastructure projects. Ensuring the security of rail lines and mining operations will be essential for long-term success.
If completed on schedule, the Karachi Rohri rail upgrade and the Reko Diq mine could transform Pakistan’s economic landscape. The mine alone is expected to generate thousands of jobs, boost exports, and position Pakistan as a key player in the global supply of copper a metal critical for renewable energy technologies and AI-driven industries.
For Pakistan, this project is more than just a railway upgrade. It is a chance to unlock new economic opportunities, reduce reliance on external debt, and strengthen its role in the global minerals race.