Pakistan has revised the financing strategy for its ML-1 Railway Project, confirming that the flagship railway upgrade is no longer part of the China-Pakistan Economic Corridor (CPEC) financing framework. The government is now pursuing funding from international financial institutions to move the project forward.
China Financing Talks Did Not Reach an Agreement
During a briefing to the Senate Standing Committee on Economic Affairs, the Secretary of Economic Affairs said that financing negotiations with China for the ML-1 project could not be finalized. As a result, the government has decided to explore alternative sources of funding to ensure the project’s implementation.
First Phase to Upgrade Karachi–Rohri Rail Line
The $7.5 billion railway modernization project will begin with the upgrade of the main rail line between Karachi and Rohri. The first phase aims to improve railway infrastructure, enhance operational efficiency, increase train speeds, and strengthen passenger and freight transportation across the country.
ADB Leads Discussions With International Lenders
According to the Economic Affairs Secretary, the Asian Development Bank (ADB) is leading financing discussions for the project. The bank is also coordinating with the Asian Infrastructure Investment Bank (AIIB) and the Islamic Development Bank (IsDB) to secure additional investment for the large-scale railway upgrade.
ML-1 Remains a Strategic Infrastructure Project
The ML-1 Railway Project is considered one of Pakistan’s most important transport infrastructure initiatives. Once completed, it is expected to modernize the national railway network, improve cargo movement, reduce travel times, and support long-term economic growth by strengthening regional connectivity and trade.
