KARACHI: Pakistan’s negotiations with the Asian Development Bank (ADB) for a proposed $2 billion loan to finance the first phase of the Main Line-1 (ML-1) railway upgradation have reached an advanced stage, officials familiar with the discussions said on Wednesday.
The 480-kilometer Karachi–Rohri section forms part of the broader $7 billion ML-1 project, a flagship scheme under the China-Pakistan Economic Corridor (CPEC). Originally backed by a $6.67 billion Chinese pledge in 2016, the project has faced nearly a decade of financing delays.
ML-1 aims to modernize Pakistan’s 1,250-kilometer strategic rail corridor stretching from Kotri in Sindh to Attock in Punjab. The upgraded line will include more than 90 operational stations and a dedicated freight track to enhance cargo movement.
“Talks with ADB are at an advanced level to secure financing for the Karachi–Rohri section,” a senior Pakistan Railways official said on condition of anonymity. The first phase alone is expected to cost around $2 billion.
In September 2025, Pakistan and China formed a consortium of bilateral and multilateral partners — including the ADB and the Asian Infrastructure Investment Bank (AIIB) — to arrange financing for ML-1.
Pakistan Railways Chief Executive Officer Amir Ali Baloch confirmed that the government has placed ML-1 at the top of its infrastructure priorities.
“The upgradation of ML-1 has been prioritized,” Baloch said, adding that Phase-1 (Karachi–Rohri) is expected to break ground in July, subject to financing support from the ADB.
The first phase will be executed under the proposed $2 billion financing arrangement through the military-run National Logistics Corporation (NLC), though officials did not elaborate on its specific role.
The renewed push to modernize Pakistan’s railways comes as the government seeks to expand freight capacity, boost regional trade, and overhaul aging infrastructure to support economic growth. Long-delayed plans to upgrade ML-1, ML-2, and ML-3 had stalled for years due to funding constraints and shifting priorities.
Railway officials say Islamabad is now attempting to accelerate implementation by combining multilateral financing with domestic funding arrangements. If completed, the projects would represent the most extensive overhaul of Pakistan’s railway network in its history.
Baloch also revealed that rehabilitation work on the 1,000-kilometer ML-3 corridor is expected to begin in April. The ML-3 route runs from Rohri to Taftan in Balochistan via Sibbi and Quetta. Its upgrade would strengthen Pakistan’s freight connectivity toward Turkiye through Iran.
Also Read: Pakistan Railways to Upgrade 600km Nokundi–Sibi Railway Track
An ADB spokesperson confirmed ongoing discussions with the government but emphasized that no final commitment has been made.
“The Government of Pakistan and ADB have regular discussions on railway sector development, including the ML-1 project,” the spokesperson said, adding that any potential financing would be subject to comprehensive due diligence and approval under the bank’s policies and procedures.
