Pakistan, China to divide ML-1 Railway project into two phases, the first phase set to commence from the coming month.
Pakistan and China have decided to split the $6.8 billion Main Line-1 (ML-1) railway project into two distinct phases, as reported by sources from the Finance Ministry.
The initial phase, estimated at $3.2 billion, is set to commence next month. It will involve constructing the railway line from Karachi to Hyderabad and from Hyderabad to Multan. The subsequent phase will aim to extend the track from Multan to Peshawar, with a feasibility study for Phase II scheduled to take place after the completion of Phase I.
Moreover, each phase will have its own agreements, with financing terms for Phase I expected to be finalized with Chinese officials within this month. Pakistan also intends to secure a low-interest loan from China to fund the project.
The ML-1 initiative, an essential component of the China-Pakistan Economic Corridor (CPEC), will cover a total length of 1,872 kilometers. Initially, Pakistan sought a single agreement for the entire project, but both parties ultimately opted to divide it due to the extensive scope and high costs involved.
Consequently, the division of the ML-1 project reflects a previous decision by the PML-N government to better manage the scale and expenses associated with the ambitious railway upgrade.
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