The plan to deploy railway land for ML-1 construction took a step forward on Wednesday after Prime Minister Shehbaz Sharif approved the commercial use of recovered railway land worth billions of rupees to help fund the railway upgrade. The prime minister chaired a review meeting on Pakistan Railways reforms in Islamabad, where he also pushed for corporate-style changes to make the railway financially self-sufficient.
What the directive covers
Shehbaz Sharif directed the authorities concerned to build ML-1 on a commercial basis by putting recovered, previously encroached railway land to commercial use. He approved bank funding through various commercial projects on railway land for the construction of ML-1.
The prime minister ordered a comprehensive strategy on the commercial use of the retrieved land and the bank funding plan within two weeks. He said the plan must reflect the true commercial potential of the land, and stressed the need to use the commercial value already present in railway properties.
Corporate-style reforms in Pakistan Railways featured as a separate government priority. The prime minister said the railways should become strong and economically self-sufficient, and appreciated Railways Minister Hanif Abbasi for working to make the department profitable and improve its operations.
The railway land for ML-1 plan
The ML-1 upgrade covers 1,726 kilometres of track, divided into four sections. International financing is being arranged for the first section, while the remaining sections will be funded under a separate mechanism.
| Section | Length (approx.) | Financing status |
|---|---|---|
| Karachi–Rohri | ~480 km | International financing, about $2.5 billion, most advanced |
| Rohri–Multan | — | Financing plans being drawn up |
| Multan–Lahore | — | Financing plans being drawn up |
| Lahore–Peshawar | — | Financing plans being drawn up |
The prime minister praised joint teams of the National Accountability Bureau and the Ministry of Railways, led by the NAB chairman, for identifying and recovering encroached railway land. The meeting was attended by federal ministers Ahsan Iqbal, Ahad Khan Cheema, Muhammad Aurangzeb and Hanif Abbasi, Minister of State Bilal Azhar Kayani, State Bank Governor Jameel Ahmad and NAB Chairman Lieutenant General (Retired) Nazir Ahmad Butt.
Shehbaz Sharif said the ML-1 upgrade was vital to uplift Pakistan Railways, give passengers better travel facilities and increase freight transport. Civil work on the Karachi–Rohri phase is expected to begin in January 2027, with the section designed for train speeds of up to 160 kilometres per hour.
Railways reforms and the access-to-finance meeting
In a separate meeting on access to finance, the prime minister directed the authorities to remove obstacles blocking the flow of financing to housing, agriculture and small and medium enterprises. He called for a more effective lending system and asked the Small and Medium Enterprises Development Authority to take steps to strengthen the capacity of SMEs.
The meeting also reviewed the National Bank of Pakistan’s lending performance. Shehbaz Sharif welcomed the bank’s 76 percent loan approval rate for housing finance and urged other provinces to digitise their land records on the Punjab model, so banks can extend housing loans more easily.
Frequently asked questions
How will railway land pay for ML-1?
The government will put recovered railway land to commercial use and use the commercial projects on that land to secure bank funding for the construction of ML-1. A comprehensive strategy on this financing model is due within two weeks.
How long is ML-1 and which sections does it include?
The ML-1 upgrade spans 1,726 kilometres. It is divided into four sections: Karachi–Rohri, Rohri–Multan, Multan–Lahore and Lahore–Peshawar.
Which section is being built first?
The Karachi–Rohri section comes first. It covers about 480 kilometres, carries an estimated cost of around $2.5 billion and is being financed through international lenders led by the Asian Development Bank.
What are the corporate-style reforms for Pakistan Railways?
The government wants to turn Pakistan Railways into a financially self-reliant organisation run on commercial lines. The reform package includes private sector entry through a track access regime, backed by the Transfer of Railways (Amendment) Act 2026.
When is the railway land funding strategy due?
The prime minister asked for the comprehensive strategy on commercial use of the retrieved land and bank funding for ML-1 within two weeks of the October 7 meeting.
Related stories
- PM Shehbaz orders faster ML-1 upgrade, commercial push for railways
- Punjab approves Rs400m upgrade for Lahore’s National Hockey Stadium
Originally reported by propakistani.pk.
