ADB Ready to Fund ML-1 Project, Karachi-Rohri Section Key

News Desk
3 Min Read

Islamabad( The COW News Digital) After nearly a decade of unfulfilled promises from China, Pakistan has formally requested full funding for its $7 billion Main Line-1 (ML-1) railway project from the Asian Development Bank (ADB). The move comes as the government seeks international financial support to modernize and expand the country’s key rail infrastructure.

According to sources, Prime Minister Shehbaz Sharif and Finance Minister Mohammad Aurangzeb recently met with ADB President Masato Kanda to seek assistance not only from ADB but also from the Asian Infrastructure Investment Bank (AIIB) and other international financial institutions. The focus of initial funding would be the Karachi to Rohri section, which is crucial for the transport of minerals from the Reko Diq project, including copper and gold, once production begins in 2028.

Both ADB and AIIB have indicated willingness to fund approximately 60% of the Karachi-Rohri section, with an estimated cost of $2 billion. Discussions are ongoing for phased funding of other sections of ML-1. Railway officials emphasized that completing the Karachi-Rohri stretch on time is critical to support the Reko Diq mining operations and ensure smooth logistics.

ADB has also pledged a $10 million Project Readiness Facility by November, which will cover the Chinese feasibility study, detailed design, and review of the Rohri-Multan section. While the government initially planned to lay the ML-1 foundation stone in June 2026, ADB and the Ministry of Railways have proposed December 2026 as a more feasible timeline.

Meanwhile, ML-3, intended primarily for freight transport from Reko Diq to Gwadar and Karachi, still lacks a funding source. Officials say the project remains commercially non-viable, causing delays in progress.

Finance Minister Aurangzeb also requested ADB to increase the guarantee limit for Panda bonds, with plans to issue $750 million in bonds later this year to raise additional financing for ML-1. Officials stressed that international funding is essential to modernize Pakistan’s rail network, enhance cargo capacity, and support economic growth.

The ML-1 project, part of the China-Pakistan Economic Corridor (CPEC), is expected to revolutionize rail freight and passenger services, reducing travel times and enhancing connectivity between major cities. Full implementation depends on timely international financial support and phased completion of strategic railway sections.

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