The Asian Development Bank (ADB) has formally agreed to finance the multibillion-dollar Mainline-1 (ML-1) project, marking a breakthrough in the long-delayed upgrade of Pakistan’s railway network from Karachi to Peshawar.
The development comes after years of uncertainty, as the ADB had earlier withdrawn from the project when China opposed third-party participation in financing and execution.
According to the Economic Affairs Division, ADB President Masato Kanda held a meeting on Wednesday with Minister for Economic Affairs Ahad Khan Cheema, where both sides discussed the project’s scope, financing needs, and implementation timelines.
Secretary Railways briefed the ADB delegation on the critical importance of ML-1 for passenger movement, trade, and regional connectivity. Minister Cheema voiced confidence that the ADB would provide phased support for the project while stressing the urgency of fast-tracking approvals to enable early implementation. He also urged reforms in credit guarantee frameworks to allow better utilization of financial headroom.
President Kanda, while extending condolences over lives lost in the recent monsoon floods, reaffirmed the ADB’s commitment to supporting ML-1, recognizing its strategic importance for trade and regional integration. He further assured that the bank would prioritize the commencement of the Rohri–Karachi section in the initial phase.
The meeting concluded with the signing of an agreement between the ADB and the Capital Development Authority (CDA), under which the CDA will allocate land in Islamabad for the construction of a new ADB office building.
