KARACHI: Talks between Pakistan and the Asian Development Bank (ADB) over a $2 billion loan agreement to complete the first phase of a multibillion-dollar railway upgradation project have reached an “advanced level,” officials privy to the matter said on Wednesday.

The 480-kilometer Karachi-Rohri railway section is part of the $7 billion Main Line-1 (ML-1) project, which Islamabad has long sought to implement under the China-Pakistan Economic Corridor (CPEC) project. 

The ML-1 upgrade is the largest infrastructure scheme under the over $60 billion CPEC project, with Beijing originally pledging $6.67 billion for it in 2016. However, financing has stalled for nearly a decade.

The ML-1 project aims to modernize Pakistan’s 1,250-kilometer strategic railway corridor stretching from Kotri city in Sindh to the eastern city of Attock in Punjab. It will feature over 90 operational stations and a dedicated freight track.

“The talks with ADB have reached an advanced level for securing financing to complete the Karachi-Rohri project,” said a Pakistan Railways official, who was privy to the negotiations, on condition of anonymity.

“The project is expected to cost about $2 billion.” 

Pakistan and China formed a consortium of bilateral and multilateral partners, which includes the ADB and the Asian Infrastructure Investment Bank (AIIB) in September 2025, to finance the ML-1 project.

Pakistan Railways Chief Executive Officer Amir Ali Baloch said the government has placed the ML-1 upgradation at the top of its infrastructure agenda.

“The government has prioritized the upgradation of ML-1,” Baloch told Arab News. 

The ML-1 project’s first phase will be executed under the proposed $2 billion financing arrangement through the military-run National Logistics Corporation (NLC), Baloch disclosed without elaborating further about the NLC’s role. 

“Phase-1 (Karachi-Rohri) of the $6.7 billion ML-1 project is expected to break ground in July with financing support from ADB,” he said. 

Pakistan has recently moved to revive long-delayed railway modernization plans and is lining up financing timelines for work on the country’s most critical train corridors.

The push comes as the government seeks to expand freight capacity, boost regional trade and upgrade decades-old infrastructure to ensure economic growth. 

The modernization of Pakistan’s mainline tracks, particularly ML-1, ML-2 and ML-3, has remained stalled for years due to financing delays and shifting priorities.

The latest timelines provided by officials indicate Islamabad is now trying to fast-track the process by combining multilateral support with domestic financing arrangements.

If executed, the projects would mark the largest overhaul of Pakistan’s railway system in its history.

“Additionally, rehabilitation of the 1,000-kilometer ML-3 is likely to commence in April,” Baloch said.

ML-3 corridor stretches from Rohri to Taftan in Pakistan’s southwestern Balochistan province via the Sibbi and Quetta cities. The track’s rehabilitation would enhance Pakistan’s regional freight connectivity toward Turkiye via Iran, the Pakistan Railways CEO added. 

The latest timelines provided by railway officials indicate Islamabad is now trying to fast-track the process by combining multilateral support with domestic financing arrangements. If executed, the projects would mark the largest overhaul of Pakistan’s railway system.

An ADB spokesperson confirmed that “regular” dialogue had taken place between the government and the bank. However, he stressed that no final commitments have been made.

“The Government of Pakistan and ADB have regular discussions on railway sector development, including the ML-1 project,” the spokesperson said.

Any potential ADB assistance would be subject to “comprehensive due diligence and consideration” under the bank’s policies and procedures before any commitment is made, he added.