China

CRFSDIG considers Kashgar – Gwadar line feasible

According to a study carried out by the China Railway First Survey and Design Institute Group (CRFSDIG), a 3,000 km railway line connecting Kashgar in the Chinese region of Xinjiang Uygur to the port of Gwadar in Pakistan is feasible. The line to be built under the project worth €52.7 billion (CNY 400 billion) is planned to be part of China’s Belt and Road Initiative. However, the report says there could be issues with securing financing for the project. Due to energy shortages, poor investment environment and fiscal deficits, Pakistan’s economic growth rate could be a problem. As a result, in terms of railway investment and construction, Pakistan is unable to provide sufficient financial and material support and mainly relies on Chinese companies for investment and construction.