The Asian Development Bank (ADB) has formally agreed on ML-1 project financing, unlocking progress on the long-delayed railway upgrade from Karachi to Peshawar.
The Economic Affairs Division confirmed that ADB President Masato Kanda met Minister for Economic Affairs Ahad Khan Cheema on Wednesday to discuss the scope, financing needs, and implementation timeline of the Mainline-1 project. The commitment represents a major breakthrough after years of uncertainty, as ADB had previously withdrawn when China opposed third-party participation.
During the meeting, the Secretary Railways underlined the strategic importance of ML-1 for passenger movement, trade, and regional connectivity. Minister Cheema voiced confidence that phased ML-1 project financing by ADB would support early implementation, while also calling for reforms in credit guarantee frameworks to maximize Pakistan’s financial resources.
ADB President Kanda reaffirmed the bank’s commitment, noting ML-1’s role in boosting trade and regional integration. He extended condolences over lives lost in the recent floods and confirmed that the Rohri–Karachi section would be prioritized in the first phase of the upgrade.
The meeting concluded with the signing of an agreement between ADB and the Capital Development Authority (CDA). Under the deal, the CDA will allocate land in Islamabad for the construction of a new ADB office, strengthening the bank’s long-term engagement in Pakistan.
The approval of ML-1 project financing is expected to fast-track Pakistan’s most ambitious railway initiative, modernizing infrastructure and enhancing connectivity from Karachi to Peshawar.