ISLAMABAD, Pakistan: In a major development for Pakistan’s infrastructure, Islamabad and Beijing have agreed on a $7 billion financing consortium to push forward the long-delayed ML-1 railway project. The consortium will bring together funding from China, Pakistan, the Asian Development Bank (ADB), and the Asian Infrastructure Investment Bank (AIIB), ensuring a stronger and more diversified financial framework for the project.
The ML-1, a 1,700-kilometer railway line stretching from Karachi to Peshawar, is a central pillar of the China-Pakistan Economic Corridor (CPEC) and is considered vital for boosting trade and connectivity within the country. The agreement was finalized during Prime Minister Shehbaz Sharif’s recent visit to Beijing, where both sides also reviewed the roadmap for the second phase of CPEC (2025–2029).
Planning Minister Ahsan Iqbal confirmed that, in addition to ML-1, the discussions covered upgrading the Karakoram Highway, developing industrial parks in Karachi and Islamabad, and enhancing cooperation in agriculture, health, and trade. The upcoming Joint Cooperation Council meeting on September 26 in Beijing is expected to further cement these commitments.
Analysts believe the inclusion of ADB and AIIB in the financing framework marks a strategic shift, reducing sole reliance on Chinese loans while giving the project wider international credibility. For Pakistan, the deal revives hopes of finally modernizing its railway backbone, which has long suffered from delays, underfunding, and outdated infrastructure.
This fresh momentum signals that the ML-1 may finally move from years of paperwork to tangible progress on the ground, paving the way for faster, safer, and more reliable transport across the country.
This story has been reported by PakTribune. All rights reserved.