Key Takeaways
- Asian Development Bank and World Bank show interest in the Karachi-Peshawar Main Line-1 project.
- The project's estimated cost has been revised to $6.68-6.80bn following Chinese withdrawal of financing.
- Committee raises concerns over proposed operational speed and infrastructure design.
International financial institutions, including the Asian Development Bank (ADB) and the World Bank (WB), have shown significant interest in the Karachi-Peshawar Main Line-1 (ML-1) railway project, which is now estimated to cost $6.68-6.80 billion.
The Economic Affairs Division (EAD) briefed the National Assembly’s Standing Committee on the project, highlighting the involvement of the ADB as the lead financing institution, with co-financing commitments from the Asian Infrastructure Investment Bank (AIIB) and the World Bank.
The project, which aims to rehabilitate and upgrade railway infrastructure, also includes institutional and operational reforms to enhance the efficiency and sustainability of Pakistan Railways.
The committee noted that the project design has been re-evaluated to accommodate train speeds of up to 160km per hour, though the operational speed is currently planned at 120km per hour, with a construction period targeted for completion within three years.
Committee members expressed reservations about the proposed operational speed, emphasizing the need to fully leverage modern railway technologies and international standards to achieve the higher speed where feasible.
The committee also recommended a consultative meeting of federal and provincial ministries and departments to focus on major development and infrastructure projects in Karachi and other areas of Sindh, with a particular emphasis on resolving financing-related bottlenecks.
The panel raised serious concerns over the progress and completion timeline of the K-IV water supply project, which is critical for meeting Karachi’s growing water requirements. The expected completion timeline is April 2029, with the city currently requiring more than 1,200 million gallons of water per day (MGD).
During the briefing, the committee took note of the assessment of the earlier desalination plant by Nespak, which was deemed not technically suitable. The committee stressed the need for a thorough review of all technical, financial, and implementation aspects of the K-IV project.
