The Kalachun Road, an important transportation link between China and Pakistan, is known as the "China-Pakistan Friendship Road".

It is not only the life line of the foreign economy in the northern Pakistan region, but also the flagship project of the China-Pakistan Economic Corridor.

However, the road is no longer able to meet modern transportation needs due to years of failure to repair and frequent geological disasters.

Recently, Pakistan asked China to help rebuild this road, but China's response was different from the past.

Kalahunan Road was built in 1966 and opened in 1978.

Because of the three major mountains of Kalahari, the Himalayas and Hindu Kush, its geological conditions along the route are extremely complex, and are constantly facing disasters such as snowfall, mountain slopes and mud streams.

In 2010, a major landslide occurred in the Hongzha area, forming a 20-kilometer-long barrier lake, causing the road to be interrupted for five years.

Although the road faces many challenges, it is crucial for China-Pakistan trade and human exchanges.

Now, the two countries have decided to rebuild the road in phases, and the Pakistani government has approved the first phase of the project, with a total budget of about $2 billion.

It is worth noting that China did not directly provide preferential loans this time, but suggested that Pakistan seek financing from multilateral institutions such as the World Bank and the Asian Development Bank.

This means that out of the total budget of 7 billion dollars for the reconstruction project, 6 billion dollars need to be raised by Pakistan itself.

This change has attracted widespread attention.

There are profound considerations behind China's adjustment of financing strategies.

First of all, the current economic situation in Pakistan is very tense.

If China continues to provide large-scale preferential loans, Pakistan¡¯s debt pressure will further increase, and there may even be repayment risks.

Second, this model introduces multilateral institutions and distributes funding pressure.

More importantly, China hopes to promote the transition of China-Pakistan cooperation from ¡°blood transfusion assistance¡± to ¡°bloodmaking cooperation¡±.

Previously, China-Pakistan cooperation projects were often offered with preferential loans from China, while Pakistan was responsible for building and operating, but this model is difficult to sustain.

This renovation project emphasizes market-oriented operations and requires Pakistan to pay attention to the actual benefits of the project.

In addition, this adjustment of the financing model also contributes to enhancing the international image of the Belt and Road Initiative.

In the past, some Western public opinion criticized the "Belt and Road" project for increasing the debt burden of developing countries.

This time, by introducing multilateral institutions and emphasizing debt sustainability, China has demonstrated a more open and market-oriented cooperation attitude.

This will not only respond to external doubts, but also enhance the international recognition of the "Belt and Road" project.

For Pakistan, this adjustment is both an opportunity and a challenge.

Multilateral financing provides it with more sources of funding, and in addition to the World Bank and the Asian Development Bank, Pakistan can also seek support from the Islamic Development Bank and international private capital.

For example, after the reconstruction of Karakoram Highway, the surrounding logistics parks and trade posts will be more attractive for investment, which may attract private capital to build warehouses and freight companies, thus bringing employment and tax revenue.

The reconstructed Kalanchoe Highway will also significantly improve the efficiency of China-Pakistan trade.

It is estimated that the truck time from Kyrgyzstan in northern Pakistan to Xinjiang Kash in China will be shortened by three hours, and the cost of transportation will also decrease dramatically.

This is significant for Pakistani farmers and factories-agricultural products such as mangoes and cherries can enter the Chinese market faster, while industrial raw materials will be imported more efficiently.