Pakistan seeks $2.5 billion consortium financing for ML-1 as ADB takes lead
Pakistan is seeking around $2.5 billion from a consortium of international lenders to finance construction of the Main Line-1 (ML-1) railway project, with the Asian Development Bank (ADB) expected to take the lead and potentially provide more than $1 billion, The News reported.
Other multilateral lenders, including the Asian Infrastructure Investment Bank (AIIB) and the World Bank, are also expected to participate in the financing arrangement for the long-delayed Pakistan Railways project.
“The estimated funding requirement will stand at $2.5 billion, which will be raised through a consortium of international lenders. The ADB will assume the major role with possible lending of over $1 billion,” a senior government official said.
Federal Minister for Economic Affairs Senator Ahad Cheema separately confirmed that around $2.5 billion would be required from a consortium of lenders for construction of ML-1, with the financing to be arranged in tranches.
The financing push comes as the project moves towards another critical milestone, with ADB aiming to finalise the ML-1 design in October 2026 before proceeding towards procurement and other implementation stages.
Cheema held a meeting with an ADB delegation to review progress on the railway project, focusing on completing the design and subsequent preparatory requirements.
ADB told the meeting that its technical team and project consultants were working on the project and making efforts to complete the design within October. Once the design is finalised, the lender intends to work with the government to move ahead with procurement and subsequent stages.
The bank also said requirements for further processing and approvals, including consideration by the ADB Board, would be communicated to the government on time.
Cheema said Prime Minister Shehbaz Sharif had accorded high priority to ML-1 and wanted the project to move towards implementation at the earliest possible stage.
He assured the ADB delegation that the government would complete its requirements on time and provide the necessary facilitation. The minister also called for continued reviews of the implementation schedule to identify opportunities to shorten timelines without compromising technical, legal and procedural requirements.
The latest financing arrangement represents another shift in efforts to fund the long-delayed railway upgrade. ML-1 was initially conceived nearly two decades ago under the National Trade Corridor during the Pervez Musharraf-Shaukat Aziz period, when ADB was among the leading potential financiers.
The project was subsequently incorporated into the China-Pakistan Economic Corridor (CPEC) at Islamabad’s request. However, a financing arrangement for the project could not be finalised between 2014 and 2026.
ADB is now again expected to assume the leading financing role as Pakistan attempts to move ML-1 from the planning and design stages towards procurement and construction.
The meeting was attended by ADB Country Director for Pakistan Emma Fan, the ADB deputy country director, Railways Secretary Mazhar Ali Shah, Economic Affairs Secretary Muhammad Humair Karim, the Ministry of Railways’ director general planning and other senior officials.