ML-I first phase to cost $2.1bn as govt seeks funding for second phase

Pakistan’s government has put the first, 480-kilometre Karachi-Rohri stretch of the Mainline-I railway upgrade at an estimated $2.1 billion. Railways Minister Hanif Abbasi told the Senate that the figure could change after detailed engineering work, while construction is targeted for the current fiscal year, subject to approvals, funding and procurement; completion is expected to take two and a half years.

The government is still working to finance the Multan-Rohri second phase of the delayed project, after failing to obtain $8 billion from China for ML-I. A committee led by the State Bank of Pakistan governor is examining funding options, including using railway land to borrow from domestic banks. The Frontier Works Organisation has proposed a build-and-lease model costing Rs470 billion, but disagreements over repayment and sovereign guarantees have held up progress. Proposed lease payments total Rs1.1 trillion over 25 years, while Pakistan Railways has indicated it would contribute Rs29 billion.