ML-1 railway project split into two phases

Officials from the Finance Ministry report that China and Pakistan have decided to split the $6.8 billion Main Line-1 (ML-1) railway project into two stages.

The $3.2 billion first phase is anticipated to start next month. The railway line between Karachi and Hyderabad as well as between Hyderabad and Multan would be built during this phase.

After Phase I is finished, a feasibility study for Phase II will be carried out, with the second phase’s main objective being to expand the track from Multan to Peshawar.

Separate agreements will govern each phase, and Phase I’s financial arrangements are expected to be finalized this month with Chinese officials.

For the project’s funding, Pakistan intends to obtain a low-interest loan from China.

The ML-1 project will be 1,872 km long and is a major project of the China-Pakistan Economic Corridor (CPEC). Pakistan had initially been negotiating for a single deal that would cover the entire project, but because of the project’s high cost and wide scope, both parties ultimately opted to split it.

In order to control the scope and budget of the ambitious railway improvement, the PML-N government had decided to divide the ML-1 project.