Pakistan seeks financing to modernise Karachi-Peshawar ML-1, boost trade

ULANBAATAR, Mongolia: Planning Minister Ahsan Iqbal has called for the complete modernisation of Pakistan Railways’ Main Line-1 (ML-1), saying the project is critical to expanding freight capacity, boosting trade and strengthening regional connectivity.

Addressing a development partners dialogue on “Advancing Trade, Tourism and Regional Competitiveness” in Mongolia, Iqbal presented Pakistan’s ML-1 modernisation plan and briefed development partners on progress on the Karachi-Rohri section.

He said that ML-1 was the backbone of Pakistan’s railway network, stretching 1,726 kilometres from Karachi to Peshawar and carrying 76 per cent of passenger traffic and 98 per cent of freight traffic despite significant infrastructure constraints.

“Modernising the corridor is not merely a railway development project but a national economic priority directly linked to Pakistan’s trade and growth potential,” Iqbal said.

The proposed upgrade would increase the line’s capacity from 34 to 120 train pairs, raise passenger speeds to up to 160 kilometres per hour and increase freight speeds from 30 to 80km per hour, according to the minister.

The Karachi-Rohri journey time would also be reduced from around eight hours to approximately four and a half hours, while the upgraded corridor would be able to accommodate rising freight demand projected to reach around 21 million tonnes annually by 2035.

Iqbal said that the Karachi-Rohri section, estimated to cost around $2.5 billion, was the most advanced component of the ML-1 modernisation project.

He said the Asian Development Bank (ADB) was leading the financing effort, with the Asian Infrastructure Investment Bank (AIIB), World Bank, Islamic Development Bank and European Investment Bank engaged as co-financing partners.

The project has moved beyond the conceptual stage, with project-readiness financing secured, engineering work undertaken and procurement and financing processes advancing, he added.

Iqbal stressed that Pakistan did not intend to treat the Karachi-Rohri section as an isolated project, describing it as the first step towards the complete modernisation of the Karachi-Peshawar corridor.

He said the government was simultaneously working on a financing pathway for the remaining sections between Rohri and Peshawar.

“The key issue is no longer whether ML-1 needs modernisation; the requirement is clear. The priority now is to convert the progress already made on Karachi-Rohri into implementation while securing financing for the remaining corridor in parallel,” Iqbal said.

He said the modernised ML-1 would provide Pakistan with a higher-capacity railway corridor capable of meeting growing passenger and freight demand while strengthening regional trade and connectivity.

“Our focus must now be on execution, financing continuity and completing ML-1 as an integrated Karachi-Peshawar corridor,” he added.

During his three-day visit to Mongolia to attend the CAREC International Conference, Iqbal also held meetings with the CAREC Institute and a delegation from Uzbekistan.

His participation in the conference focused on infrastructure, trade, tourism and regional connectivity initiatives aimed at expanding economic opportunities across the region.