Pakistan Seeks Additional ADB Financing for $10 Billion ML-1 Railway Project
Pakistan has requested additional financing from the Asian Development Bank (ADB) for major infrastructure initiatives and public-private partnership projects, including the $10 billion Karachi-Peshawar Main Line-1 (ML-1) railway project.
An ADB delegation led by Vice President for South, Central and West Asia Yingming Yang is currently in Islamabad for discussions on Pakistan’s development priorities under the bank’s $10 billion Country Partnership Strategy for 2026–2030. The strategy was approved by the ADB Board in March.
The delegation held separate meetings with Economic Affairs Minister Ahad Khan Cheema and Finance Minister Muhammad Aurangzeb on Wednesday.
Pakistan Seeks More Funding for ML-1
Pakistan has already secured $2 billion in ADB financing for the Karachi-Rohri section of the 1,670-kilometer ML-1 project, which is currently under implementation.
The Economic Affairs Division is now discussing additional financing options with the ADB. These include financial guarantees and partnerships with the private sector.
During his meeting with the ADB delegation, Cheema urged the bank to increase its private-sector operations in Pakistan and highlighted ML-1 as a major national infrastructure project.
The government also briefed the ADB on ongoing fiscal, structural and governance reforms. Officials said efforts are underway to improve project implementation and develop a pipeline of commercially viable projects, while privatization remains an important government priority.
ADB Supports Pakistan’s Economic Reforms
Yingming Yang welcomed improvements in Pakistan’s sovereign credit ratings and acknowledged progress toward greater macroeconomic stability.
He also recognized Pakistan’s efforts to improve project readiness and said the country offered opportunities for the ADB to introduce innovative financing mechanisms. These could include policy-based guarantees and guarantees for Panda bond issuance.
The ADB vice president reaffirmed the bank’s support for the ML-1 project and its early groundbreaking. He also proposed establishing a working group focused on institutional reforms within Pakistan Railways, with the process expected to begin soon.
During a separate meeting with Finance Minister Muhammad Aurangzeb, Yang also praised Pakistan’s progress in macroeconomic stabilization, fiscal management and the external account.
He said the improvement in Pakistan’s sovereign credit ratings reflected continued reform efforts and stronger economic fundamentals.
