International financial institutions have expressed interest in financing Pakistan’s $6.8 billion Main Line-1 (ML-1) railway project, as authorities review plans to modernise the country’s major rail corridor.
The Asian Development Bank (ADB) is being considered as the lead financing institution, while the Asian Infrastructure Investment Bank (AIIB) and the World Bank have indicated their willingness to provide co-financing. The European Investment Bank, Islamic Development Bank and Japan International Cooperation Agency have also expressed interest in the project.
The ML-1 initiative goes beyond the rehabilitation and upgrading of railway infrastructure. It also includes institutional and operational reforms aimed at improving the efficiency, sustainability and service delivery of Pakistan Railways.
Following a reassessment of the project design, several gaps and deficiencies were identified and adjustments were incorporated. The estimated cost has subsequently been revised to around $6.68 billion to $6.8 billion, down from the earlier estimate of approximately $9 billion.
The upgraded infrastructure is being designed to support train speeds of up to 160 kilometres per hour, while the initial operational speed has been set at up to 120 kilometres per hour. The construction period is expected to be around three years.
Concerns were raised over the proposed operational speed, with emphasis placed on adopting modern railway technology and international standards. It was recommended that infrastructure and operational arrangements be designed to enable speeds of up to 160km per hour where technically and economically feasible.
Attention was also drawn to major development and infrastructure projects in Karachi and other parts of Sindh. A coordinated meeting involving relevant federal and provincial departments was recommended to address outstanding issues, resolve financing and administrative bottlenecks and accelerate project implementation.
Particular concern was expressed over delays in the K-IV water supply project, which is considered important for meeting Karachi’s growing water requirements. The project is currently expected to be completed by April 2029.
Karachi’s current water demand is estimated at more than 1,200 million gallons per day (MGD), with requirements expected to rise significantly by 2029-30 due to population growth, urban expansion and increasing domestic and commercial consumption.
The proposed desalination facility was also reviewed, with an earlier facility assessed as technically unsuitable. Authorities were urged to conduct a comprehensive review of the technical, financial and implementation aspects of the K-IV project and take corrective measures without further delays.
It was further recommended that the K-IV project be reviewed under the relevant federal planning mechanism with participation from all concerned federal and provincial stakeholders. The focus would be on addressing Karachi’s immediate and long-term water needs, resolving implementation challenges and ensuring timely completion.
Authorities also stressed the need to accelerate stalled and delayed investment projects involving the UAE and other countries through stronger coordination and facilitation.
