Federal Cabinet Greenlights ML-1 Financial Agreement Negotiations with China

Pakistan’s Government Takes Decisive Steps in CPEC Expansion and National Security Enhancements

P.c. China Pakistan Economic Corridor

Federal Cabinet Greenlights ML-1 Financial Agreement Negotiations with China


ISLAMABAD: The federal cabinet, under the leadership of Prime Minister Shehbaz Sharif, has given the go-ahead for initiating negotiations on the Financial Commitment Agreement between Pakistan Railways and China for the critical upgradation of the ML-1 railway project, a cornerstone of the China-Pakistan Economic Corridor (CPEC).

In the cabinet meeting, PM Shehbaz Sharif mandated that the finalized ML-1 agreement be presented for cabinet approval. The prime minister also briefed the cabinet on his recent visit to Quetta, highlighting ongoing efforts to enhance the capabilities of law enforcement agencies, including the police and levies, in Balochistan.

P.c. China Pakistan Economic Corridor

PM Shehbaz emphasized the nation's unified stance against terrorism, committing to a no-tolerance policy towards those obstructing development. He praised Balochistan’s government for integrating Baloch youth into the national mainstream, promoting growth and opportunity. The federal government, he assured, would fully support initiatives to provide world-class education and equal development opportunities to Baloch youth.

The prime minister firmly stated that no negotiations would be held with terrorists, and those hindering progress would face the full force of the state. He also expressed confidence in the armed forces' efforts, supported by the federal government, to pursue and neutralize terrorist threats. During his Quetta visit, PM Shehbaz interacted with families of martyrs, who, despite their loss, displayed commendable morale.

Addressing Pakistan's economic outlook, PM Shehbaz highlighted Moody’s positive assessment as evidence of the nation’s upward economic trajectory. He reaffirmed China’s role as Pakistan’s closest ally, with CPEC paving the way for new development opportunities. The prime minister also mentioned the imminent launch of a five-year economic revival plan focused on boosting exports, strengthening agriculture and industry, and empowering the youth through vocational training.

The cabinet also endorsed decisions made by the Economic Coordination Committee on August 29, 2024. Additionally, the federal cabinet approved Rs20 billion for Operation Azm-e-Istehkam, a comprehensive initiative launched in June 2024 to combat extremism through military action and socio-economic development. The cabinet further sanctioned PKR 1.951 billion for the security of the Reko Diq project, amidst diverse opinions on the operation within Pakistan.