ADB May Lead $2.5 Billion Financing for Pakistan’s ML-1 Railway Project
Pakistan is working to secure $2.5 billion in financing from a group of international development institutions for the first phase of the Main Line-1 (ML-1) railway project.
The Asian Development Bank (ADB) is expected to play a leading role in arranging the financing. Reports indicate that the bank could contribute more than $1 billion, while other institutions, including the Asian Infrastructure Investment Bank (AIIB) and the World Bank, may also participate.
Economic Affairs Minister Senator Ahad Cheema said the required financing would be arranged in different tranches. He made the remarks following a meeting with an ADB delegation that reviewed progress on the ML-1 project.
During the meeting, the ADB said its technical experts and project consultants were working on the initiative. The project design is expected to be finalized in October, after which the bank and the government will move forward with procurement and other preparations.
Cheema emphasized the importance of coordination between all stakeholders to ensure that the project remains on schedule. He also assured the ADB delegation that the government would complete the required formalities and provide the necessary support.
The ML-1 project has experienced several delays, particularly regarding the finalization of its financing arrangements. The railway initiative was initially developed under the National Trade Corridor and was later included in the China-Pakistan Economic Corridor (CPEC) framework.
