NA body informed: Pakistan seeks USD2bn ADB financing for ML-1 project
ISLAMABAD: The National Assembly Standing Committee on Planning, Development and Special Initiatives was informed on Tuesday that Pakistan is advancing talks with the Asian Development Bank (ADB) for a potential USD 2 billion loan to finance the completion of the first phase of the multibillion-dollar Main Line-1 (ML-1) railway modernisation project.
The first phase covers a 480-kilometre section between Karachi and Rohri and forms a key part of the USD 7 billion China-Pakistan Economic Corridor (CPEC) initiative.
The 18th meeting of the Standing Committee on Planning, Development and Special Initiatives was held at Parliament House, Islamabad, on Tuesday under the chairmanship of MNA Syed Abdul Qadir Gillani.
READ MORE: ADB set to finalise ML-1 design by Oct
The Committee reviewed the implementation of its earlier recommendations and examined progress on the ML-1 Upgradation Project, the Sukkur-Hyderabad Motorway (M-6), selected Public Sector Development Programme (PSDP) projects, and matters relating to the National Highway Authority (NHA) and Karachi infrastructure.
The ML-1 Upgradation Project was also discussed in detail. The Railways Division briefed the Committee on the project, including its financing arrangements, and informed it that financing was expected from the Asian Development Bank (ADB). The Committee was apprised of the project’s importance and sought further information regarding the proposed timeline and expected date of groundbreaking.
The Committee was informed that the government had prioritised the upgradation of ML-1 to expand freight capacity, boost trade and modernise decades-old infrastructure to support sustained economic growth.
During the briefing, the Committee was informed that Pakistan’s objective was not to treat the Karachi-Rohri section as an isolated project, but as the first step towards the complete modernisation of the Karachi-Peshawar railway corridor. Pakistan is simultaneously working to develop a financing plan for the remaining sections from Rohri to Peshawar.
Committee members expressed concern over repeated delays and implementation timelines and sought the presence of the Chairman of the NHA and the relevant minister for a detailed briefing on the project at a subsequent meeting.
The Committee also reviewed progress on the Sindh sections of NHA projects included in the current PSDP, relating to the rehabilitation and improvement of National Highway N-5.
The Moro-Ranipur section under the Rehabilitation and Reconstruction of N-5, financed through the Asian Development Bank (ADB)-funded Flood Emergency Loan, was reported to be in progress and targeted for completion by June 2027. The Hala-Moro section under the Sectional Rehabilitation of N-5, being undertaken with Chinese grant assistance, had yet to commence.
Similarly, work on the Ranipur-Sukkur section under the Widening and Improvement of Priority Sections of N-5 (Phase-I), financed by the Asian Infrastructure Investment Bank (AIIB), had not commenced, with land acquisition still in progress.
Members raised concerns over the condition and quality of the road infrastructure and sought greater clarity on the information presented to the Committee.
The Committee deferred further consideration of the matter and called for a section-wise briefing, supported by photographs, to enable a more detailed assessment.
Members of the panel noted that the expressway serves commuters within Karachi and raised concerns over the impact of increased toll charges on daily users, as well as road safety. The Committee sought clarification on the basis for the toll and discussed measures to minimise the financial burden on commuters.
The Committee further sought updates on the Dera Murad Jamali Bypass (N-25) and the Mian Channu-Kamalia Road, noting that the latter was not reflected in the current PSDP. Members also sought region-wise details of allocations under the current PSDP to examine the distribution of development resources.
The Committee also took up the matter of Treatment Plant-5 (TP-5) under the Greater Karachi Sewerage Project (S-3). It was informed that approximately 64 acres of land were covered by sanads issued by the Government of Sindh to various persons, creating an issue that required resolution.
The Committee was further informed that a high-level meeting had already been proposed with the Government of Sindh to discuss the matter.
The Committee recommended that the Karachi Port Trust (KPT) provide, in writing, the findings of its consultant regarding the justification for and requirement of the substantial area of land proposed for TP-5. It also recommended that the project be reviewed and reassessed in light of current requirements and technological developments, given that it had been conceived some time ago.
The meeting was attended by Ms Naz Baloch, Farhan Chishti and, via video link, Ahmad Raza Maneka and Ms Izbal Zehri, members of the Committee. Senior officials of the Ministry of Planning, Development and Special Initiatives, National Highway Authority, Karachi Port Trust and Railways Division also attended the meeting.
Copyright Business Recorder, 2026