The Asian Development Bank (ADB) is set to conduct a fact-finding mission in January 2027 to review the proposed modernisation of Pakistan’s Main Line-1 (ML-1) railway corridor with the federal and Sindh governments.
The mission will examine key aspects of the project, including environmental and social safeguards, labour conditions, resource management, pollution control, land acquisition and restrictions on land use. It will also assess biodiversity conservation, sustainable use of natural resources, protection of cultural heritage and potential climate-related impacts.
Under the proposed multi-tranche financing programme, the ADB will support the rehabilitation and upgrading of the 480-kilometre Karachi-Rohri section of ML-1, one of Pakistan’s main routes for passenger and freight transportation.
The financing package is expected to cover climate-resilient railway infrastructure, upgraded signalling systems and operational improvements. It will also include institutional strengthening and capacity-building measures designed to improve railway efficiency, safety, sustainability and regional connectivity.
Project documents show that the proposed facility includes $1 billion from the ADB’s ordinary capital resources, while another $100 million would be provided through concessional ordinary capital resources lending.
The development bank has already backed Pakistan Railways’ ML-1 transformation through project-readiness financing approved in 2025. It is now considering additional multi-tranche funding alongside measures aimed at strengthening institutional capacity and governance.
According to the project framework, the investment programme is intended to improve domestic and regional connectivity, enhance logistics efficiency and support Pakistan’s economic competitiveness by developing a faster, safer, more reliable, affordable and environmentally sustainable railway network.
Earlier this month, ADB Vice President for South, Central and West Asia Yingming Yang visited Islamabad, where he held meetings with Prime Minister Shehbaz Sharif, Railways Minister Hanif Abbasi and other senior government officials.
The discussions focused heavily on the planned modernisation of the ML-1 corridor stretching from Karachi to Peshawar. Prime Minister Shehbaz Sharif highlighted the importance of the project for improving freight movement, strengthening regional trade links and supporting industrial development. He also called for work on the project to begin at the earliest.
Railways Minister Hanif Abbasi told the ADB delegation that upgrading the Karachi-Rohri section is estimated to require around $2.5 billion and could be completed within three years. He said the 183-kilometre Nawabshah-Rohri section would be prioritised in accordance with the prime minister’s directives.
Abbasi also urged the ADB to speed up approval of the central investment loan, while reaffirming Pakistan’s intention to work with the ADB and other development partners to arrange financing for the remaining ML-1 sections between Rohri and Peshawar.
