Major global lenders line up for $6.8 billion ML-1 after China’s exit, NA panel told

According to Dawn, major international lenders have expressed interest in the ML-1 rail project, a 1,800-kilometre line from Karachi to Peshawar. Its cost estimate has been revised to between $6.68 and $6.80 billion, compared with an earlier figure of around $9 billion. The Asian Development Bank is being weighed as the lead financier, while the Asian Infrastructure Investment Bank and the World Bank have offered co-financing. The European Investment Bank, the Islamic Development Bank and Japan International Cooperation Agency have also signalled their interest.

Officials from the Economic Affairs Division, under Secretary Humair Karim, gave the parliamentary panel a presentation, with Mirza Ikhtiyar Baig in the chair. The lower figure follows a fresh review of the design aimed at spotting shortcomings and adding required upgrades. Officials told lawmakers the scheme goes beyond track rehabilitation, also covering institutional and operational changes aimed at making Pakistan Railways more efficient and sustainable.

Committee members questioned the gap between the old and new estimates and urged wider use of modern rail technology and global standards. They proposed that trains be able to run at 160 kilometres per hour where technically and economically viable, even though day-to-day operations are currently planned for a maximum of 120 kilometres per hour. The construction timeline is roughly three years.