Asian Development Bank, World Bank show interest in $6.8bn ML-1

Major international lenders, including the Asian Development Bank (ADB) and World Bank (WB), have shown interest in the $6.8 billion Karachi-Peshawar Main Line-1 (ML-1) railway project, following the withdrawal of Chinese financing. A team from the Economic Affairs Division briefed the National Assembly’s Standing Committee, stating that the ADB is the lead financing institution, while the Asian Infrastructure Investment Bank (AIIB) and the World Bank have made co-financing commitments.

Other interested parties include the European Investment Bank, Islamic Development Bank, and Japan International Cooperation Agency. The project now encompasses institutional and operational reforms to enhance overall efficiency, sustainability, and service delivery of Pakistan Railways. The revised cost estimate ranges from $6.68 to $6.80 billion, down from the initial $9 billion estimate.

The construction timeline is projected to take about three years. The committee has expressed concerns over the proposed operational speed, recommending that the project fully utilize modern railway technologies and international standards to achieve an operational speed of 160 kilometers per hour, rather than limiting benefits to the current 120 kilometers per hour.

The committee also highlighted the urgency of the K-IV water supply project in Karachi, emphasizing its critical role in meeting the city's growing water needs, which currently stand at over 1,200 million gallons per day. The committee stressed the importance of addressing outstanding implementation issues and ensuring timely completion of the K-IV project, recommending comprehensive review and action under the steering committee at the Ministry of Planning and Development, with involvement of all relevant federal and provincial stakeholders.