After years of delays and financing uncertainty, Pakistan’s most ambitious railway modernization effort has received a critical boost. The Asian Development Bank (ADB) has agreed to provide funding for the Mainline-1 (ML-1) project, a multibillion-dollar overhaul of the country’s key rail corridor stretching from Karachi to Peshawar.
A Shift After Years of Deadlock
The announcement marks a turning point for a project that had been stalled over financing disputes. The ADB had previously withdrawn from ML-1 following objections from China, which opposed third-party involvement in the venture. Its renewed commitment signals a broader willingness to diversify international financing for Pakistan’s infrastructure.
Government Push for Speedy Implementation
At a meeting in Islamabad on Wednesday, ADB President Masato Kanda and Minister for Economic Affairs Ahad Khan Cheema discussed the project’s scope, funding needs, and phased rollout. Railway officials highlighted ML-1’s role as the backbone of Pakistan’s passenger and freight network, essential for boosting trade and regional connectivity.
Cheema pressed for accelerated approvals and reforms to Pakistan’s credit guarantee frameworks, arguing that swift action was necessary to unlock the project’s economic benefits.
First Focus: Karachi–Rohri Section
Kanda expressed condolences over the recent monsoon floods before reaffirming the ADB’s backing of ML-1. He emphasized that the Karachi–Rohri stretch, a high-traffic portion of the line, would be prioritized in the first phase of construction. This section is considered a critical bottleneck in Pakistan’s transportation network, with potential to significantly cut travel times and logistics costs once upgraded.
Wider Cooperation Beyond ML-1
The meeting also produced an agreement between the ADB and the Capital Development Authority (CDA), which will allocate land in Islamabad for the bank’s new office building. Analysts see this as a sign of ADB’s deepening engagement in Pakistan beyond transport infrastructure, potentially paving the way for future investments.
The ML-1 upgrade, once completed, will be Pakistan’s largest-ever rail investment, carrying strategic implications for trade with China and Central Asia while modernizing a network that has seen decades of underfunding.
