ADB set to approve USD 1.2 billion ML-1 railway rehabilitation financing
The Asian Development Bank is expected to approve USD 1.2 billion in financing for the rehabilitation of Pakistan's Main Line-1 railway project, marking a major breakthrough for the country's most critical rail corridor. The approval would unlock the first significant tranche of multilateral funding for ML-1, which stretches approximately 1,872 kilometres from Karachi to Peshawar.
ML-1 is Pakistan's principal railway artery and its rehabilitation has been a long-standing national infrastructure priority. The project is designed to upgrade ageing track infrastructure, raise maximum train speeds, and improve freight capacity, which is essential for reducing logistics costs across the economy.
The ADB financing is expected to complement funding from the China-Pakistan Economic Corridor framework, under which ML-1 has been listed as a flagship project. Delays in securing financing from multiple sources have kept the project in limbo for several years, making the ADB's likely approval a significant operational signal.
The development carries broad economic implications. Enhanced rail capacity on ML-1 is expected to reduce the burden on Pakistan's road infrastructure, lower per-unit freight costs, and support export competitiveness. The government is anticipated to formally welcome the approval and accelerate procurement processes.
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