PM Shehbaz orders faster ML-1 upgrade, commercial push for railways
PM Shehbaz orders faster ML-1 upgrade, commercial push for railways
ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday directed officials to accelerate the ML-1 railway project upgrade and introduce corporate-style reforms in Pakistan Railways, ordering that valuable railway land be put to commercial use to help fund the work.
Chairing a review meeting on Pakistan Railways, the prime minister said modernising ML-1 was of key importance for developing the railways, improving passenger services and expanding freight transport along the Karachi-to-Peshawar corridor.
He directed that ML-1 be developed on a commercial basis by using identified railway land worth billions of rupees. “The real commercial potential of railway properties needs to be harnessed,” he said, calling for the effective use of valuable railway land for commercial purposes to contribute to the national economy and the development of Pakistan Railways.
The prime minister approved securing bank financing through commercial projects on railway land, with the funds channelled into the upgrade. He also appreciated the efforts of teams from the National Accountability Bureau and the Ministry of Railways, led by the NAB chairman, to identify and recover encroached railway land, the Prime Minister’s Office said.
Corporate-style reforms
Corporate-style reforms to strengthen the railways and make it economically self-sufficient were among the government’s priorities, the prime minister said. He added that the railway minister was working to make the organisation profitable and improve its operations.
The directive signals a shift toward running the loss-making railways on business lines, with land monetisation positioned as the main lever for raising funds internally rather than relying entirely on external borrowing.
Why ML-1 matters
The ML-1 project aims to upgrade and modernise the main railway line connecting Karachi with Peshawar, the backbone of Pakistan’s freight and passenger rail network. The first phase covers the Karachi to Rohri and Sukkur section, with civil work targeted to begin in January 2027 and financing expected from the Asian Development Bank.
Successive governments have treated ML-1 as the centrepiece of railway revival, but the project has moved slowly through planning and financing stages for years. Wednesday’s meeting was the latest attempt to push it from paperwork toward construction.
What happens next
With the prime minister’s approval for bank financing against commercial projects on railway land, officials will now have to identify bankable commercial ventures on the recovered land and line up lenders. The pace of land recovery by the NAB and railways teams will determine how quickly that financing materialises.
FAQs
What is the ML-1 railway project?
ML-1 is the planned upgrade of Pakistan’s main railway line from Karachi to Peshawar, aimed at modernising track, signalling and stations to carry more freight and passengers at higher speeds.
How will the ML-1 upgrade be funded?
Prime Minister Shehbaz Sharif has approved bank financing raised against commercial projects developed on railway land, alongside expected financing from the Asian Development Bank for the first phase.
What corporate reforms did the PM order for Pakistan Railways?
He directed corporate-style reforms to make the organisation economically self-sufficient and profitable, with railway land used commercially and encroached land recovered with the help of NAB and the Ministry of Railways.
