Pakistan, China to Sign Separate ML-1 Project Phases
Pakistan has opted to enter into separate agreements with China for the execution of Phase-I and Phase-II of the Mainline One (ML-1) railway project, a key component of the China-Pakistan Economic Corridor (CPEC). Initially valued at $6.8 billion, the entire ML-1 deal will now be split into multiple phases, with a distinct agreement for each.
Sources reveal that the Phase-I agreement, valued at $3.2 billion, will focus on upgrading the railway lines from Karachi to Hyderabad and Hyderabad to Multan. The Phase-II agreement, covering the Multan to Peshawar segment, will only be signed after a feasibility study is conducted following the completion of Phase-I.
Pakistan and China are finalizing financing terms for the Phase-I project, with Pakistan pursuing long-term, low-interest financing options from China. This phased approach is a shift from earlier negotiations where the two countries had explored a single comprehensive agreement for the entire ML-1 project but couldn't finalize a lump-sum deal.
ML-1, part of the ambitious CPEC initiative, spans over 1,872 kilometers and aims to modernize Pakistan’s railway infrastructure by enhancing the speed, capacity, and safety of the rail network. Once completed, the upgraded railway will significantly reduce travel time, improve cargo transport, and boost regional connectivity, playing a pivotal role in Pakistan’s economic growth.