In a major development in the billion-dollar ML-1 project, China and Pakistan have agreed on a concessional loan for the project funding and Beijing will provide soft loan for ML-1, reported 24NewsHD TV channel quoting its sources. 

Pakistan will return the soft or concessional loan to China in 15 to 20 years and will also provide a sovereign guarantee for the loan. 

The entire responsibility of the loan will be on the Government of Pakistan, the TV channel reported. 

Sources said China agreed on the sovereign guarantee for ML-1, which is a fast-track project of the CPEC. 

It is pertinent to note that Rehabilitation & Upgradation of Karachi-Lahore Peshawar (ML-1) Railway Track (1,872 kms) project is part of China Pakistan Economic Corridor (CPEC) aimed at doubling the entire track from Karachi to Peshawar, speed of passenger trains to be raised from 65/110km/h to 160km/h, freight trains to operate at 120km/h, computer-based signalling and control system and grade separation to ensure the safety of train operations.

The location of ML-1 is Karachi to Peshawar via Hyderabad, Nawabshah, Rohri, Rahimyar Khan, Bahawalpur, Khanewal, Sahiwal, Lahore, Gujranwala, Rawalpindi and Peshawar.

The proposing and implementing agency of the project is the Ministry of Railways while the supervising agency is the Ministry of Communications, Pakistan.