The Asian Development Bank and World Bank are considering financing Pakistan’s Main Line 1 railway project, commonly known as ML-1, which covers the 1,800-kilometer railway route between Karachi and Peshawar. The project has undergone a reassessment that has brought its estimated cost down to between $6.68 billion and $6.80 billion, compared with an earlier estimate of around $9 billion.
The development was shared with the National Assembly’s Standing Committee on Economic Affairs during a briefing by the Economic Affairs Division. Officials told the committee that the Asian Development Bank is being considered as the lead financing institution for ML-1, while the Asian Infrastructure Investment Bank and World Bank have indicated their willingness to participate through co-financing arrangements. The European Investment Bank, Islamic Development Bank and Japan International Cooperation Agency have also expressed interest in supporting the major railway infrastructure project.
ML-1 is being planned as a broader railway modernization initiative rather than a project focused solely on physical rehabilitation and upgrading. According to the briefing, the project includes institutional and operational reforms intended to improve the efficiency, sustainability and service delivery of Pakistan Railways. The project design was reassessed to identify gaps, address shortcomings and incorporate improvements considered necessary for the long-term operation of the railway network.
Following the reassessment, the estimated cost was revised to approximately $6.68 billion to $6.80 billion. The reduction from the earlier estimate of about $9 billion reflects changes made during the review of the project design and its infrastructure requirements. The revised financing structure is expected to involve multiple international development and financing institutions, with the Asian Development Bank being considered for a leading role in arranging support for the project.
A key issue discussed by the committee was the speed at which trains would operate on the upgraded railway infrastructure. The project is being designed to accommodate train speeds of up to 160 kilometers per hour, while the currently proposed operational speed is up to 120 kilometers per hour. The committee raised concerns over the difference between the infrastructure’s design capability and the planned operating speed, particularly in view of the scale and long-term importance of the ML-1 investment.
The committee called for modern railway technologies and international standards to be incorporated into the project wherever appropriate. Members stressed that infrastructure and operational parameters should support train speeds of up to 160 kilometers per hour where technically and economically feasible. The discussion reflects the committee’s focus on ensuring that the substantial investment in ML-1 delivers infrastructure capable of supporting improved railway services over the longer term.
Construction of the ML-1 project is targeted to take around three years. Once implemented, the project is expected to involve improvements to railway infrastructure along the Karachi-Peshawar corridor as well as changes aimed at strengthening the operational and institutional performance of Pakistan Railways. The participation of multiple international financial institutions could also shape the project’s financing arrangements as Pakistan works toward implementation of the revised plan.
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