The Asian Development Bank (ADB) has reportedly agreed to finance Pakistan’s Mainline-1 (ML-1) railway upgrade, a multibillion dollar project that has not been completed since its proposal in 2015. According to reports, this section of the rail network stretches from Karachi to Peshawar and its upgrade could significantly boost connectivity within the country. 

As per reports, the ADB had previously stepped back from the project when Beijing objected to third-party involvement in the project’s execution and financing. According to the Economic Affairs Division, ADB President Masato Kanda met Minister for Economic Affairs Ahad Khan Cheema in Islamabad on Wednesday to discuss the project's funding requirements, design, and timelines for implementation.

During the meeting, the Secretary of Pakistan Railways (PR) reportedly highlighted ML-1’s importance for trade, passenger mobility, and regional connectivity. As per the details, the Minister of Economic Affairs expressed confidence that the ADB would extend phased financial support and stressed the need to expedite approvals so construction could begin at the earliest. 

He also called for reforms in credit guarantee mechanisms to improve Pakistan’s ability to utilize financing options. The President reaffirmed the regional lender’s commitment to the project, describing it as vital for trade and regional integration. 

According to reports, he also said that the Karachi to Rohri stretch of the railway would be prioritized in the first stage of work. The discussions concluded with the signing of a separate agreement between the ADB and the Capital Development Authority (CDA), under which the CDA will provide land in Islamabad for the development of a new ADB office building.

It merits a mention that earlier this month, reports revealed that the ADB had entered into advanced talks to arrange $2 billion in financing for the modernisation of a 500km stretch of railway that was previously included in a Chinese-backed plan. The proposed revamp aims to modernise tracks and bridges from Karachi to Rohri near Sukkur.

As per the details, this project will allow trains on tracks to operate at higher speeds. Reports indicate that the upgraded line will connect to a branch coming from the Reko Diq mining area at Rohri and will transport copper concentrate to port facilities.

Reports reveal that the ADB has vested interest in the Reko Diq mining project as it committed a staggering $410 million in financing for the project earlier this week.