Pakistan seeks JICA financing for ML-1 Railway Project

The government has invited the Japan International Cooperation Agency (JICA) to co-finance the multibillion-dollar Main Line-1 (ML-1) Railway Project, as Pakistan seeks to expand development cooperation with Japan.

The development follows a meeting between Federal Minister for Economic Affairs Ahad Cheema and the President of JICA, Dr Tanaka Akihiko, who was accompanied by a high-level delegation, to discuss avenues for strengthening bilateral development cooperation and expanding JICA’s support for Pakistan’s priority sectors, read an official statement on Wednesday.

Welcoming the JICA President and his delegation, the minister appreciated JICA’s longstanding partnership with Pakistan and acknowledged its significant contribution to the country’s socio-economic development over the past seven decades.

ADB assures support to ML-1 Railway project

He noted that Japan’s Official Development Assistance to Pakistan, amounting to approximately $11.7 billion, has played a vital role in advancing key sectors, including energy, transport infrastructure, industry, agriculture, water resources, health, education, and security.

During the meeting, Cheema invited JICA to consider co-financing the ML-1, highlighting that the Asian Development Bank (ADB) and other development partners are already supporting the strategic initiative.

He emphasised that the modernisation of ML-1 would strengthen Pakistan’s transportation network, facilitate trade, improve industrial connectivity, and contribute significantly to sustainable economic growth.

In response, Dr Tanaka acknowledged the importance of the project and stated that JICA would consider the proposal, read the statement.

The ML-1 is a significant railway modernisation project under the China-Pakistan Economic Corridor (CPEC), aimed at upgrading Pakistan Railways’ existing main line.

During the meeting, Cheema also emphasised the importance of investing in skilled workforce development to enhance Pakistan’s human capital and meet the evolving demands of domestic and international labour markets.

The JICA chief expressed his support for the proposal and indicated that JICA would facilitate Pakistan in this area by considering the initiative as part of its future project pipeline.

Highlighting the growing importance of the digital economy, the minister sought JICA’s support for upgrading internet infrastructure in rural areas of Pakistan to improve digital connectivity and create greater opportunities for freelancers, entrepreneurs, and e-commerce businesses. Dr Tanaka appreciated the proposal and acknowledged its potential to contribute to inclusive economic development.

Cheema further requested JICA’s assistance in conducting feasibility studies for major development projects, noting that high-quality project preparation is essential for attracting investment and ensuring successful implementation.

The JICA President reaffirmed that feasibility studies are among JICA’s core strengths and assured the Minister of the agency’s support in assisting the Government of Pakistan in this area.

The Minister also underscored the vast potential for cooperation in promoting Pakistan’s tourism sector, particularly through the preservation, conservation, and upgradation of Gandhara art and civilisation sites. He observed that enhanced collaboration in this field would help promote cultural tourism and strengthen people-to-people ties between Pakistan and Japan. Dr Tanaka welcomed the proposal and said JICA would give it due consideration.

Both sides reaffirmed their shared commitment to further deepening Pakistan-Japan development cooperation and agreed to continue close engagement.