ADB Expected To Lead $2.5 Billion Financing For ML-1

Pakistan is seeking a $2.5 billion loan from a group of international lenders to fund the initial phase of the Main Line 1 (ML-1) railway project, with the Asian Development Bank (ADB) anticipated to assume the lead role. Reports indicate that the ADB might contribute over $1 billion towards the total financing, with other participants including the Asian Infrastructure Investment Bank (AIIB) and the World Bank.

The financing will be provided in stages, as Economic Affairs Minister Senator Ahad Cheema elucidated during a meeting with an ADB delegation reviewing the project's progress. The ADB's technical team and consultants are currently working on the project, with the aim to finalize the project design in October. Upon completing the design, the bank will collaborate with the government to advance procurement and other preparations.

Senator Cheema emphasized the importance of seamless coordination among all stakeholders to ensure the project stays on track. He also assured the ADB delegation that the government would fulfill its obligations promptly and provide the requisite support. The ML-1 project has experienced several setbacks in obtaining financing. Initially conceptualized under the National Trade Corridor and subsequently integrated into the China Pakistan Economic Corridor, the financing arrangements have remained unsolidified.