The Asian Development Bank (ADB) is considering financing of up to $1.1 billion for the proposed upgrade of the Karachi Rohri section of Pakistan Railways’ Main Line 1 (ML 1), with the planned investment combining major infrastructure improvements with operational, institutional and financial reforms. According to ADB project documents, the proposed Upgradation of Pakistan Railways Main Line 1 (Karachi Rohri Section) Project would receive $1 billion from the lender’s ordinary capital resources and an additional $100 million in concessional ordinary capital resources lending. The financing would be provided through a multitranche financing facility and would support improvements along one of Pakistan’s key passenger and freight railway corridors.
The project remains at the proposed stage and has not yet received final approval from the Asian Development Bank. It received concept clearance on June 18, 2026, while fact finding for the project is currently scheduled for January 11 to 22, 2027. ADB has not yet specified a date for final approval of the proposed financing. Once implemented, the project would cover approximately 480 kilometres of the Karachi Rohri railway section, connecting Karachi’s major port infrastructure with the wider national railway network and supporting the movement of passengers and freight along an important transport corridor.
The proposed investment would focus on developing climate resilient and high capacity railway infrastructure while strengthening connectivity between railway and port facilities. Modern signalling systems and improved railway operations are also included in the planned upgrade. The project would seek improvements in operations, maintenance and asset management, while also strengthening the institutional capacity of Pakistan Railways. These components indicate that the proposed programme would extend beyond physical construction and equipment upgrades, with operational capabilities and institutional performance forming an important part of the planned investment.
ADB has identified deteriorating railway infrastructure and the limited use of rail transport as major constraints affecting Pakistan’s transport efficiency, logistics competitiveness and sustainable economic growth. According to the lender, decades of investment that has been heavily focused on roads have resulted in a transport system that depends extensively on road networks, with roads carrying the overwhelming majority of passengers and freight. This imbalance has limited the role of railways in the movement of goods and people despite the potential benefits that rail transport can provide for large scale passenger and freight operations.
The Asian Development Bank estimates that logistics costs account for around 15% of Pakistan’s gross domestic product. Rail transport, particularly for bulk freight, can be considerably cheaper and cleaner than road transportation, but its use remains limited. The proposed ML 1 investment is therefore intended to encourage a greater shift of freight transportation from roads to rail while also improving passenger mobility, connectivity and safety. ADB expects the project to contribute to improvements in railway transport efficiency, safety and sustainability along the Karachi Rohri corridor by 2040.
The proposed financing also reflects the lender’s view that infrastructure investment alone will not be sufficient to address the structural challenges facing Pakistan’s railway sector. ADB has stressed the need for deeper institutional and financial reforms within Pakistan Railways to ensure that improved infrastructure can be operated and maintained on a sustainable basis. The proposed multitranche financing facility would therefore combine physical infrastructure investment with capacity building, governance improvements and reforms intended to strengthen the long term performance of the railway system.
ADB is already supporting the transformation of Pakistan’s railway sector through Project Readiness Financing that was approved in 2025. The proposed follow on financing would build on that support by combining investment in the Karachi Rohri section with measures designed to improve institutional capacity and railway governance. The wider objective is to create a more efficient and sustainable railway system capable of handling a larger share of Pakistan’s passenger and freight movement while reducing pressure on road based transportation.
Improved railway connectivity could also provide wider economic and social benefits, according to the Asian Development Bank. Better transport links could improve access to education, healthcare, markets and economic opportunities for vulnerable groups, including women, elderly people, persons with disabilities and children. By upgrading the Karachi Rohri section, introducing modern signalling and improving railway operations alongside institutional reforms, the proposed $1.1 billion programme is expected to strengthen a major transport corridor while supporting Pakistan’s longer term efforts to improve logistics efficiency and railway sustainability.
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