ADB considers $1.1 billion financing for Karachi-Rohri ML-1 upgrade

According to Profit by Pakistan Today, the Asian Development Bank is considering lending up to $1.1 billion to upgrade the Karachi-Rohri stretch of Pakistan Railways' Main Line-1 (ML-1). The package would combine $1 billion drawn from the lender's ordinary capital with $100 million in concessional lending under a multitranche facility. The scheme is still at the proposal stage, having received concept clearance on June 18, 2026, and no approval date has been set.

The work would cover roughly 480 kilometres of the corridor, a key passenger and freight line tied to the country's main port and the wider national rail network. Planned measures include climate-resilient, high-capacity rail and port connectivity, modernised signalling, and stronger operations, maintenance and asset management. Fact-finding is set for January 11-22, 2027, and the lender has stressed that physical upgrades alone will not fix the sector's structural problems.

ADB estimates logistics costs at around 15% of GDP, and it notes that road transport dominates while rail, especially for bulk freight, is cheaper and cleaner yet underused. The bank expects the project to improve efficiency, safety and sustainability along the corridor by 2040. It also sees better rail links widening access to education, healthcare and jobs for women, older people, persons with disabilities and children.