World Bank, ADB eye $6.8bn Pakistan railway upgrade

Major international lenders including the World Bank and Asian Development Bank have signaled interest in financing Pakistan’s $6.8 billion Main Line-1 railway project, a 1,800-kilometer route connecting Karachi to Peshawar. The revised cost reflects China’s withdrawal from the initiative, which now also includes institutional and operational reforms to modernize Pakistan Railways.

• ▪ADB expected to lead financing; Asian Infrastructure Investment Bank and World Bank committed as co-financiers alongside European Investment Bank, Islamic Development Bank, and Japan International Cooperation Agency
• ▪ML-1 cost reduced from initial $9bn estimate to $6.68-6.80bn after project reassessment and design refinements
• ▪Infrastructure designed for train speeds up to 160km/h, though operations initially planned at 120km/h; committee urged full utilization of modern technologies
• ▪Three-year construction timeline targeted for completion of the 1,800km Karachi-Peshawar corridor
• ▪Project goes beyond rail rehabilitation to include institutional reforms and efficiency improvements for Pakistan Railways operations
• ▪Parliamentary committee expressed concern project should prioritize 160km/h operational capability where technically and economically viable
• ▪Committee also flagged K-IV water supply project delays, with Karachi facing 1,200+ million gallons daily demand and completion expected April 2029
• ▪Earlier desalination plant assessment found technically unsuitable; comprehensive K-IV review recommended under Planning Ministry steering committee
• ▪SIFC directing renewed push on stalled UAE and bilateral projects with enhanced coordination

Source: according to media reports