Islamabad: China will invest about $8.5 billion (R56 thousand crore) to upgrade Pakistan’s rail network and to build a key gas pipeline with Iran to meet the country’s energy needs, a media report said yesterday.

The Central Development Working Party (CDWP), a Pakistan body to authorise major projects, on Wednesday approved $10 billon worth two projects. China will provide loans equivalent to 85 per cent ($8.5 billion) of the cost of each project.