While the company’s withdrawal may seem abrupt, it is the result of mounting pressures – both internal and external – that eroded its once-thriving business in Pakistan.
Despite billions invested in reconstruction and ongoing government promises, thousands still reside in temporary shelters, and numerous public buildings, particularly schools and hospitals, remain unrebuilt.
The increase is driven by militant attacks and intensified counter-terrorism operations, particularly in the provinces of Khyber Pakhtunkhwa (KP) and Balochistan.
Finalized in mid-2025 after extensive talks between Pakistan’s SIFC and US agencies, the deal supports Washington’s strategy to diversify critical mineral supply chains and reduce reliance on China.
With each mother who learns to cook a new, nutritious meal, and each spoonful of semolina porridge lovingly fed to a child, the cycle of poverty and poor health begins to break.
Recent tariff negotiations have also strengthened Pakistan’s position. Islamabad successfully reduced US reciprocal tariffs from 29 per cent to 19 per cent, a move projected to enhance access to US markets.
In a move signalling a profound shift in Pakistan’s infrastructure financing and geopolitical posture, China has withdrawn from financing the pivotal Main Line-1 (ML-1) railway project, a cornerstone of the China–Pakistan Economic Corridor (CPEC)
China has placed food security at the centre of its national strategy, setting a binding target to raise annual grain production capacity to 725 million metric tonnes by 2030.
The appeal came during a high-level meeting with visiting Indian Defence Minister, Rajnath Singh on 9 September 2026, the first such visit by an Indian defence minister in 38 years.
China has placed food security at the centre of its national strategy, setting a binding target to raise annual grain production capacity to 725 million metric tonnes by 2030.