Cheema Asks ADB to Fast-Track ML-1 Railway, Secures $5.6b IsDB Backing in Bangkok
Pakistan has asked the Asian Development Bank to expand private-sector lending and to move faster on the ML-1 Railway Upgradation Project, with the bank’s president committing to fast-track its institutional processes for the flagship scheme. The request came at a meeting on the sidelines of the 2026 Annual Meetings in Bangkok, where the push for ML-1 ADB financing sat at the centre of the talks.
Federal Minister for Economic Affairs Ahad Khan Cheema, who is also Pakistan’s Governor to the ADB, met ADB President Masato Kanda on Thursday, according to an official statement. Cheema congratulated Kanda on his re-election for a second term and welcomed the approval of the ADB’s Country Partnership Strategy for 2026-2030.
ML-1 ADB financing: feasibility study and procurement in focus
Cheema appreciated the ADB’s lead role on ML-1 and underlined the need for early completion of the feasibility study and the start of procurement. The railway upgrade is the centrepiece of Pakistan’s transport plans, and the government has been working to line up financing from multiple lenders.
Emphasising private sector-led growth, Cheema called for expanding the ADB’s non-sovereign operations in Pakistan and for a stronger permanent on-ground presence to facilitate investment transactions and build a pipeline of public-private partnership projects. The delegation also highlighted the need for affordable development financing, greater flexibility in the bank’s lending framework and sustained support for Pakistan’s priorities.
The Bangkok push builds on a busy week for Pakistan’s economic team in the Thai capital. Finance Minister Muhammad Aurangzeb separately pressed lenders to cut costs in meetings on the sidelines of the same annual gatherings.
$5.6b IsDB envelope under 2026-2030 strategy
In a separate meeting, Cheema met Islamic Development Bank Group Chairman Dr Muhammad Sulaiman Al Jasser to accelerate cooperation under Pakistan’s Member Country Partnership Strategy for 2026-2030, which envisages a $5.6 billion indicative financing envelope from the IsDB Group.
Cheema stressed that the envelope must be translated into a concrete project pipeline with clear timelines for approvals, disbursements and implementation. He appreciated the IsDB’s $475 million financing for the M-6 Sukkur-Hyderabad Motorway and welcomed continued support for polio eradication, including the recent approval of $100 million for Phase V.
He sought enhanced IsDB support for ML-1 as well and urged close coordination with the ADB and other co-financiers. The minister called for a whole-of-Group approach involving the IsDB, the International Islamic Trade Finance Corporation, the Islamic Corporation for the Development of the Private Sector, the Islamic Corporation for the Insurance of Investment and Export Credit, and the IsDB Institute — covering export finance, small and medium enterprises, infrastructure, public-private partnerships and the energy transition.
Cheema also noted that more than $1 billion in trade financing had been mobilised through the trade finance corporation during FY2025-26, and asked for more competitive terms, pointing to Pakistan’s improving macroeconomic and credit profile.
Frequently asked questions
What is the ML-1 project?
ML-1 is Pakistan’s flagship railway upgradation project, covering the main rail line from Karachi to Peshawar. The government has been seeking financing from multilateral lenders including the ADB to carry out the upgrade.
What did Pakistan ask the ADB for in Bangkok?
Economic Affairs Minister Ahad Khan Cheema asked for expanded ADB private-sector lending, a stronger on-ground presence for investment transactions, and fast-tracking of the bank’s processes for the ML-1 project. ADB President Masato Kanda committed to fast-track the institutional processes.
What is the $5.6 billion IsDB envelope?
The Islamic Development Bank Group has an indicative $5.6 billion financing envelope for Pakistan under the Member Country Partnership Strategy for 2026-2030. Cheema asked that it be converted into a concrete project pipeline with clear timelines.
What other projects came up in the IsDB meeting?
Cheema acknowledged the IsDB’s $475 million financing for the M-6 Sukkur-Hyderabad Motorway and its recent $100 million approval for polio eradication Phase V, and sought the bank’s enhanced support for ML-1 alongside the ADB.
