ADB, Railways ministry in talks over $2bn loan for Karachi–Rohri ML-1

ISLAMABAD: The Asian Development Bank (ADB) and the Ministry of Railways are reportedly in advanced discussions for a loan of about USD2 billion to finance the Karachi- Rohri section of the ML-1 railway project, well-informed sources told Business Recorder.

The development was shared during a recent meeting on the progress of China-Pakistan Economic Corridor (CPEC) projects, presided over by Minister for Planning, Development and Special Initiatives Ahsan Iqbal.

The forum was informed that the Pakistan Embassy in China has requested detailed information on the financing plan of the ML-1 project, particularly regarding third-party participation, including ADB, as well as Chinese financing requirements for specific sections.

The information will be shared with Chinese authorities to facilitate further engagement.

READ MORE: ML-1 framework: ADB mission reassures to prioritize Karachi–Rohri rail corridor

The Ministry of Railways briefed the meeting that negotiations with ADB for the Karachi–Rohri section were at an advanced stage. The total cost of this segment is estimated at approximately $2 billion, of which ADB is expected to provide around $1.2 billion. ADB is also in discussions with the Asian Infrastructure Investment Bank (AIIB) and the European Investment Bank (EIB) to arrange financing for the remaining amount.

The chair directed the Ministry of Railways and relevant authorities to prepare a detailed plan outlining current progress and the way forward for sections beyond Rohri, particularly in the context of exploring Chinese financing options.

It was further directed that this information be shared with Pakistan’s Mission in Beijing at the earliest for onward consultation with the Chinese side.

During the meeting, representatives of the National Information Technology Board (NITB) gave a presentation on the development of a CPEC Dashboard.

The system will enable focal persons from relevant ministries and stakeholders to digitally report implementation issues and maintain a record of directives, decisions, timelines, and follow-up actions.

The Dashboard will also provide a comprehensive overview of CPEC’s progress, including completed projects, ongoing initiatives, and those at various stages of execution.

The minister directed all stakeholders to strictly comply with the Prime Minister’s instructions, emphasizing that the digital monitoring system is essential for effective implementation of the expanded framework of CPEC 2.0. NITB was instructed to incorporate minutes of meetings and decisions of the Joint Cooperation Committee (JCC), Joint Working Groups (JWGs), and the CPEC-PRM National Steering Committee, along with features to review ministry-wise progress.

NITB was further directed to make the CPEC Dashboard operational within 15 days.

The meeting was also informed that the Data Centre project is being developed by the Fauji Foundation, and a memorandum of understanding was signed with ZTE during the Prime Minister’s visit to China in September 2025. ZTE is currently bearing accommodation and meal expenses of security personnel deployed at the project site.

Given the importance of the project and its strict timelines, the Government of Punjab was requested to waive Special Protection Unit (SPU) security charges. Officials noted that under the Ministry of Interior’s standard operating procedures, security for foreigners working on non-CPEC projects is to be funded from the public exchequer.

Copyright Business Recorder, 2026