The Asian Development Bank (ADB) has reaffirmed that it will fund the ML-1 Railway Project which is a multibillion-dollar upgrade of the Karachi-to-Peshawar rail line in Pakistan. This development terminates years of waiting and uncertainty, because the project has previously experienced setbacks by China rejecting third parties in financing and implementation. The renewed commitment represents a new venture into the plan to modernize the railway in Pakistan.
In the Economic Affairs Division, ADB President Masato Kanda visited Minister for Economic Affairs Ahad Khan Cheema on Wednesday to discuss the scope of the project, the financial requirement and schedules. In the discussion, Secretary Railways underscored the role of the ML-1 as a means of passenger mobility, expansion of trade and connectivity of the region. Minister Cheema highlighted the importance of making approvals faster and urged changes to the credit guarantee structures to make the most use of resources available.
President Kanda, in his condolence message concerning the losses during the floods, promised that the ADB was going to focus on Rohri-karachi section during the first phase of implementation. He reiterated the bank support saying it was strategically important that the ML-1 supported the growth of trade and the integration of the region.
Read more: Pakistan, China to Fund ML-1 Railway Project in Phases
Another final result of the meeting was the agreement that was reached between the ADB and the Capital Development Authority (CDA) which provided a piece of land in Islamabad on which to build a new office block of ADB. Through this achievement, Pakistan has been able to attract ADB funding towards the ML-1 Railway Project to make it one of the core pieces in the transformation of the transport infrastructure in the country.
