Key Takeaways
- Pakistan seeks $2.5 billion from international lenders for ML-1 railway project.
- ADB expected to provide over $1 billion, with AIIB and World Bank also participating.
- Project design to be finalized by October, with procurement and preparations to follow.
Pakistan is set to receive $2.5 billion in financing for the first phase of the Main Line 1 (ML-1) railway project, with the Asian Development Bank (ADB) expected to lead the effort. Economic Affairs Minister Senator Ahad Cheema announced the details during a meeting with an ADB delegation.
According to reports, ADB could provide more than $1 billion of the total financing, while the Asian Infrastructure Investment Bank (AIIB) and the World Bank are also expected to contribute to the consortium.
The $2.5 billion financing requirement will be arranged in tranches, as stated by Cheema. The project, initially conceived under the National Trade Corridor, later became part of the China Pakistan Economic Corridor, but faced delays in securing financing.
The ADB delegation informed the meeting that its technical team and project consultants are working on finalizing the project design, which is expected to be completed by October. Once the design is finalized, the bank will collaborate with the government to proceed with procurement and other preparations.
Cheema emphasized the importance of close coordination among all stakeholders to ensure the project stays on schedule. He assured the ADB delegation that the government would meet its requirements on time and provide necessary support.
The ML-1 project has faced repeated delays in securing financing, but the latest developments suggest a renewed push for its completion. The project aims to improve transportation infrastructure and boost economic activity in Pakistan.
The ADB delegation expressed confidence in the project's potential and the government's commitment to its success. They highlighted the need for a well-coordinated approach to ensure the timely execution of the project.
The project's progress is seen as a significant step towards enhancing Pakistan's railway network and integrating it with regional and international transport corridors.
