Rehabilitation of ML-1 project: ADB likely to approve USD1.2bn financing

ISLAMABAD: The Asian Development Bank (ADB) is likely to approve a financing facility of around USD 1.2 billion for the rehabilitation of Pakistan Railways’ Main Line-1 (ML-1) project from Karachi to Rohri section, for which the bank is also planning to bring in other development partners as co-financiers.

This was revealed by well-placed sources while talking to Business Recorder.

Speaking about ADB-supported regional connectivity projects under the CAREC framework, sources said the feasibility work for the Karachi-Rohri section was currently under preparation. The project is being positioned as one of the bank’s flagship connectivity initiatives in Pakistan, linking the critical minerals value chain for exports.

Pakistan’s broader regional connectivity ambitions with Central Asia had been adversely affected by the suspension of development financing operations in Afghanistan following the Taliban takeover on Aug 15, 2021, sources added.

“Most of our regional connectivity projects, including trade, road, and power initiatives aimed at linking the region with Central Asia, were naturally routed through Afghanistan,” the source said. However, infrastructure operations in Afghanistan by the Asian Development Bank (ADB) and the World Bank remain suspended, as their shareholders do not recognize the Taliban government.

The alternative regional routes were either impractical or constrained. Iran is not a member country of ADB, while routes through China involve mountainous terrain that makes connectivity projects difficult and costly.

Apart from the ML-1, the ADB is also working on a possible international airport public-private partnership initiative involving Islamabad airport and potentially other airports.

Under the proposal, the government has sought the ADB’s support in bringing in private operators for operations and maintenance through a public-private partnership arrangement. The Bank will initially appoint a transaction adviser before seeking international investors and partners interested in operating airport facilities in Pakistan.

Copyright Business Recorder, 2026