ADB finalises $1.1bn investment programme for ML-1 Karachi-Rohri rail upgrade
ADB finalises $1.1bn investment programme for ML-1 Karachi-Rohri rail upgrade
ISLAMABAD: The Asian Development Bank (ADB) is finalising a $1.1 billion investment programme to modernise the Karachi-Rohri section of the Main Line-1 railway, giving Pakistan’s longest-delayed rail project its strongest financing push in years. The package targets safety, efficiency and climate-resilient infrastructure along roughly 480 kilometres of track.
ADB ML-1 $1.1 billion: where the money goes
According to project details, the ADB plans to provide $1 billion through its ordinary capital resources and another $100 million through concessional lending. The programme is expected to cover:
- Railway infrastructure upgrades along the Karachi-Rohri corridor
- Modern signalling and operational systems
- Climate-resilient infrastructure
- Institutional and capacity-building measures
- Improvements aimed at freight and passenger efficiency
The next major step is an ADB fact-finding mission planned for January 2027. During the mission, the bank will hold discussions with the federal and Sindh governments and assess the project’s environmental, social, land-use and climate-related aspects.
Railways Minister Hanif Abbasi has said the government wants the Karachi-Rohri section completed within three years, with the 183km Nawabshah-Rohri stretch receiving priority.
A project two decades in the making
ML-1 forms the backbone of Pakistan’s railway network, running from Karachi to Peshawar. It was conceived almost two decades ago under the National Trade Corridor plan, with the ADB as the original frontrunner for financing. China later made it a flagship China-Pakistan Economic Corridor (CPEC) project, but from 2014 to 2026 its financing arrangement could not be finalised. The ADB is now set to take the leading role once again.
Pakistan had sought a $2.5 billion package for the first phase of construction through a consortium of international lenders, with the ADB expected to lead alongside the Asian Infrastructure Investment Bank (AIIB), the European Investment Bank (EIB) and possibly the World Bank. A top government official told The News that ADB lending for the first tranche could exceed $1 billion.
Federal Minister for Economic Affairs Ahad Cheema has chaired a series of meetings on the ML-1 implementation framework, with ADB Country Director Emma Fan participating. Prime Minister Shehbaz Sharif wants the groundbreaking ceremony held within the current year.
For the transport sector, the stakes are practical. A stronger rail freight network would take long-distance cargo off the highways, easing pressure on roads and cutting logistics costs for businesses that move goods between Karachi’s ports and the rest of the country.
FAQ
How much is the ADB investing in the ML-1 railway?
The ADB is finalising a $1.1 billion investment programme: $1 billion in ordinary capital resources plus $100 million in concessional lending.
Which section of ML-1 does the programme cover?
The Karachi-Rohri section, about 480 kilometres of the Main Line-1 corridor. It is the first phase of the wider Karachi-Peshawar upgrade.
When will construction start?
An ADB fact-finding mission is planned for January 2027 to finalise assessments. The government says it wants the groundbreaking ceremony this year and completion of the Karachi-Rohri section within three years.
Why does the ML-1 upgrade matter?
ML-1 is the backbone of Pakistan’s rail network. Modernising it would improve freight and passenger efficiency, reduce cargo pressure on highways and support trade flows from Karachi’s ports.
