ISLAMABAD: In a move poised to reshape Pakistan’s rail infrastructure, the coalition government, led by Prime Minister Shehbaz Sharif, has given the green light to a strategic revival plan for the long-delayed Main Line-1 (ML-1) railway project. This landmark decision, which builds on efforts by previous administrations, sets the stage for negotiations with China to kick off the project’s first phase within the year.
During a cabinet meeting on Friday, the approval was granted to proceed with the Financial Commitment Agreement between Pakistan Railways and China. This vital upgrade of the ML-1 project, an essential pillar of the China-Pakistan Economic Corridor (CPEC), had previously seen approval under different leaderships, including Nawaz Sharif and Imran Khan.
The project aims to construct an additional rail track stretching from Karachi to Peshawar, significantly enhancing connectivity across key cities like Multan and Lahore. The new line, part of a revised cost plan of $6.68 billion—down from an initial $9.85 billion—will enable trains to potentially reach speeds of up to 160 km per hour after further upgrades.
The cost reduction was achieved by trimming certain project components, a decision formalized through an addendum signed during the Belt & Road Initiative meeting held in October 2023. The project will be executed in phases, with the first phase focusing on laying new tracks from Karachi to Multan, including sections such as Karachi to Hyderabad and Hyderabad to Sukkur.
Planning Minister Ahsan Iqbal confirmed that negotiations with Chinese authorities have been finalized, with China set to provide a loan for the project. The terms of the loan are still under discussion, but the government aims to start the first phase this year.
This renewed focus on the ML-1 project underscores the government’s broader economic strategy. Prime Minister Shehbaz Sharif also hinted at an upcoming five-year Home Grown Economic Revival Plan, aimed at bolstering exports, agriculture, and industrial sectors, as well as youth empowerment through skill and vocational training.
In a related development, Ahsan Iqbal has been given additional responsibility as the deputy chairman of the Planning Commission, taking over from Dr. Jehanzeb. This move is seen as a step towards ensuring consistent oversight of the ML-1 project as it progresses.
