Pakistan accelerates ML-1 Railway financing

Pakistan accelerates ML-1 Railway financing ahead of SCO Summit as the project is set to be executed in phases.

Pakistan is speeding up the finalization of the financing agreement for the Mainline-1 (ML-1) railway project, which runs from Karachi to Peshawar, in preparation for Chinese Premier Li Qiang’s visit during the Shanghai Cooperation Organisation (SCO) summit on October 14-15.

The $6.8 billion project will be executed in phases, starting from Karachi to Multan, followed by the section from Multan to Peshawar.

At a recent meeting on the China-Pakistan Economic Corridor (CPEC), Planning Minister Ahsan Iqbal instructed the railways and finance ministries to quickly finalize the financing terms with China. The goal is to announce the second phase of CPEC during the summit.

Iqbal urged relevant government divisions to address any outstanding issues and maximize the signing of memorandums of understanding (MoUs) during the Chinese premier’s visit.

In a notable move, the minister dismissed presentations from three ministries due to the absence of key officials. However, the secretaries of information technology and information and broadcasting later joined via video link.

The Ministry of Foreign Affairs was tasked with ensuring the smooth exchange of final drafts of MoUs and agreements with China.

The meeting emphasized a high-level review of CPEC projects, highlighting the government’s unified effort to strengthen bilateral ties and develop strategies for mutual economic progress with China.