ML-1 Railway Project to Proceed in Two Phases Amid $6.8 Billion Deal

Pakistan and China have agreed to split the $6.8 billion Main Line-1 (ML-1) railway project into two distinct phases, according to sources from the Finance Ministry. This decision helps manage the extensive scope and high costs of the initiative.

The first phase, valued at $3.2 billion, is expected to commence next month. It will focus on constructing railway lines from Karachi to Hyderabad and then extending from Hyderabad to Multan. The second phase, covering the extension from Multan to Peshawar, will begin after a feasibility study is completed following Phase I.

Each phase will have its own agreement, and Pakistan aims to secure a low-interest loan from China for Phase I. The terms of financing are expected to be finalized by the end of this month. The overall project, spanning 1,872 kilometers, is a major component of the China-Pakistan Economic Corridor (CPEC).

Initially, Pakistan had sought a single agreement covering the entire ML-1 project. However, both sides ultimately decided to split the project to better manage the complexities involved, similar to a strategy employed by the previous PML-N government.