Financing ML-1 project: PM orders unlocking commercial potential of railway land

ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday directed authorities to accelerate work on the Main Line-1 (ML-1) railway upgrade and introduce corporate-style reforms to make Pakistan Railways financially sustainable.

Chairing a review meeting on reforms in Pakistan Railways, the prime minister also approved a plan to use commercial projects on railway land to secure bank financing for the ML-1 upgrade.

Sharif directed the authorities to prepare a comprehensive plan within two weeks to unlock the commercial potential of railway land and use the proceeds and bank financing towards the ML-1 project.

He stressed that the modernisation of ML-1 was critical to the development of Pakistan Railways, improving passenger services and increasing freight transportation.

The prime minister said identified railway land worth billions of rupees should be utilised on a commercial basis to help finance the construction of ML-1.

He also called for the railway’s assets to be used more effectively to contribute to both the national economy and the development of the railway system.

“Corporate-style reforms to strengthen and make Pakistan Railways economically self-sufficient are among the government’s priorities,” the prime minister said.

He praised the efforts of teams from the National Accountability Bureau (NAB) and the Ministry of Railways, led by NAB Chairman former Lt Gen Nazir Ahmed Butt, in identifying and recovering encroached railway land.

Sharif said the railway’s valuable property needed to be used effectively for commercial purposes, while Minister for Railways Hanif Abbasi was working to improve operations and make the organisation profitable.

The meeting was informed that the 1,726-kilometre ML-1 upgrade had been divided into four major sections: Karachi-Rohri, Rohri-Multan, Multan-Lahore and Lahore-Peshawar.

The Karachi-Rohri section is being pursued with international financing, while plans are being developed to finance the remaining sections through domestic resources, the meeting was told.

Officials also briefed the meeting on various stages of the ML-1 project, progress on the Karachi-Rohri section and the status of railway-owned land.

Minister for Planning Ahsan Iqbal, Finance Minister Muhammad Aurangzeb, Economic Affairs Minister Ahad Cheema, and Minister for Railways Hanif Abbasi, State Minister Finance Bilal Kayani, State Bank of Pakistan Governor Jameel Ahmad, NAB Chairman former Lt Gen Butt and other senior officials attended the meeting.

Copyright Business Recorder, 2026