ADB and World Bank Eyeing $6.8bn ML-1 Railway Project Funding

ISLAMABAD: Major international lenders, spearheaded by the Asian Development Bank (ADB) and the World Bank, have signaled strong interest in funding the strategically vital $6.8 billion Karachi-Peshawar Main Line-1 (ML-1) railway project. The development comes in the wake of shifting financial alignments following the withdrawal of prior Chinese financing arrangements for the 1,800-kilometer infrastructure endeavor.

Briefing the National Assembly’s Standing Committee on Economic Affairs Division (EAD), a senior delegation led by EAD Secretary Humair Karim outlined the new funding architecture. Presided over by panel chairman Mirza Ikhtiyar Baig, the committee was informed that the ADB is currently being positioned as the lead financing institution for the massive undertaking. Additionally, substantial co-financing commitments have been secured from the Asian Infrastructure Investment Bank (AIIB) and the World Bank.

Beyond these primary multilateral lenders, the sprawling railway modernization initiative has also attracted formal expressions of interest from the European Investment Bank, the Islamic Development Bank, and the Japan International Cooperation Agency. This broad coalition of international financial support underscores renewed global confidence in Pakistan’s infrastructure overhaul and fiscal transparency reforms.

Parliamentary officials noted that the ML-1 initiative extends far beyond basic track rehabilitation. The modernized framework integrates rigorous institutional and operational reforms designed to drastically improve overall railway efficiency, long-term financial sustainability, and commuter safety. The EAD is expected to finalize lead-lender modalities in upcoming legislative sessions as project blueprints progress.