Key Takeaways
- Asian Development Bank (ADB) is evaluating up to USD1.1 billion for upgrading Pakistan Railways' ML-1 Karachi-Rohri section.
- The project aims to enhance climate-resilient infrastructure and modern signalling systems.
- It is expected to support a shift from road to rail transport, improving efficiency and sustainability.
The Asian Development Bank (ADB) is considering a significant investment of up to USD1.1 billion for the upgrade of Pakistan Railways' Main Line-1 (ML-1) Karachi-Rohri section. This project, described as a key passenger and freight corridor, is aimed at transforming the country's railway infrastructure to be more climate-resilient and efficient.
According to ADB project documents, the proposed investment will consist of USD1 billion from ordinary capital resources and USD100 million in concessional ordinary capital resources lending under a multitranche financing facility. The project is currently at the proposed stage, having received concept clearance on June 18, 2026, and fact-finding is scheduled for January 11-22, 2027.
The ADB has identified the deterioration of Pakistan's railway infrastructure and its underutilisation as major constraints on transport efficiency, logistics competitiveness, and sustainable economic growth. The proposed project will cover approximately 480 kilometres of the Karachi-Rohri section, linking the country's main port with the national railway network.
The development lender noted that decades of investment skewed towards roads have created a highly imbalanced transport system, with roads carrying the overwhelming majority of passengers and freight. This has contributed to logistics costs of around 15 percent of GDP, while rail—particularly for bulk freight—is considerably cheaper and cleaner but remains underutilised.
The project will focus on climate-resilient and high-capacity railway and port connectivity, alongside modernisation of signalling and railway operations. It will also support improvements in operations, maintenance, and asset management, and strengthen institutional capacity for sustainable railway operations.
The ADB said the project’s intended outcome is to improve railway transport efficiency, safety, and sustainability along the Karachi-Rohri section by 2040. The proposed investment is part of Pakistan's efforts to address structural weaknesses in its transport sector and improve the competitiveness of its logistics network.
However, the lender has stressed that infrastructure investment alone would not be sufficient and would need to be accompanied by deep institutional and financial reforms in Pakistan Railways. The ADB is already supporting the transformation through Project Readiness Financing approved in 2025 and is now considering follow-on multitranche financing coupled with capacity-building and governance reforms.
The project also carries a high environmental and social risk classification, reflecting the scale and nature of the proposed railway intervention. The ADB’s applicable safeguards cover environmental and social risk management, labour and working conditions, pollution prevention, health and safety, land acquisition and land-use restrictions, biodiversity, cultural heritage, climate change, and stakeholder engagement.
