Federal cabinet approves talks with China for ML-1 Project

The federal cabinet approves talks with China for ML-1 Project which is aimed to serve as a major transportation route under CPEC.

The federal cabinet has approved the start of negotiations on the Financial Commitment Agreement between Pakistan Railways and China, aimed at upgrading the long-awaited Mainline-1 (ML-1) project, a crucial component of the China-Pakistan Economic Corridor (CPEC).

During a cabinet meeting chaired by Prime Minister Shehbaz Sharif in Islamabad on Friday, it was decided that the final agreement for this advanced railway project will be presented to the cabinet for approval.

The ML-1 project, a major infrastructure initiative, will proceed after the federal government’s approval of the 2024-25 annual budget, which launched the second phase of CPEC. The government’s plan focuses on strengthening bilateral cooperation in sectors such as industrial development, agricultural modernization, socioeconomic growth, scientific research, infrastructure, and energy.

Spanning 1,726 kilometers, the ML-1 railway project will be implemented in three phases. Once completed, it is expected to significantly enhance Pakistan’s logistics capabilities.

Financial Support from Chinese Government

The Chinese government has committed to providing financial support for the project, potentially including loans with favorable terms. The specifics of the financing will be finalized through negotiations between the relevant departments of both countries.

The upgraded ML-1 will support train speeds of up to 160 km/h on new tracks, with an operational speed set at 120 km/h. This upgrade will further increase the line’s capacity from 34 to 120 trains per day, accommodating future population growth with a long-term perspective.

Consequently, the project aims to combine speed, reliability, and enhanced capacity in rail transport, dramatically increasing the ML-1’s passenger capacity from the current 29 million to 170 million annually, while its freight capacity will rise from 8 million to 43 million tons.

The ML-1 upgrade is designed to meet the country’s passenger and freight needs for the next 25 to 30 years. However, concerns have been raised by relevant ministries, particularly regarding the current PC-I for ML-1, which does not account for the cost and scope of rolling stock and security infrastructure. A separate PC-I, estimated at around Rs36 billion, is being processed to address the security aspects of the project.