PM Proposes Railway Land Commercialisation To Help Finance ML-1
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✧ GENERATE BRIEFING
Prime Minister Shehbaz Sharif has directed relevant federal authorities and Pakistan Railways management to fast-track corporate-style governance reforms and initiate a comprehensive commercialization plan for the department's valuable land assets to help finance the multi-billion-dollar Main Line-1 (ML-1) upgradation project. During a high-level policy review meeting in Islamabad, the prime minister emphasized that the 1,733-kilometer strategic transit corridor—stretching from Karachi to Peshawar under the China-Pakistan Economic Corridor (CPEC)—must be progressed on a sustainable commercial basis by leveraging institutional real estate to secure structured bank financing. The meeting was briefed that the grand ML-1 modernization initiative is partitioned into four primary sections: Karachi-Rohri, Rohri-Multan, Multan-Lahore, and Lahore-Peshawar. While international financing frameworks are actively being pursued for the Karachi-Rohri segment, domestic resources and commercial property-backed bank credit are being mobilized for the remaining sectors. Prime Minister Shehbaz instructed officials to submit a comprehensive blueprint within two weeks detailing the precise commercial utilization of available railway land and banking mechanisms.
Prime Minister Shehbaz Sharif has directed authorities to explore commercialisation of Pakistan Railways’ valuable land and use the proceeds to help finance the long-delayed Main Line-1 (ML-1) upgradation project.
The directive was issued during a review meeting on reforms in Pakistan Railways, where the prime minister stressed that ML-1 should be pursued on a commercial basis and that the railway’s land assets should play a greater role in financing infrastructure development.
The ML-1 project involves upgrading the railway corridor between Karachi and Peshawar, which extends roughly 1,726–1,733 kilometres. The project is a key component of the China-Pakistan Economic Corridor (CPEC) and is expected to improve passenger services and substantially increase freight capacity.
Commercial Funding Framework and Two-Week Deadline
The prime minister approved the use of bank financing backed by commercial projects on railway land for ML-1. He directed officials to prepare a comprehensive plan within two weeks covering the commercial use of disposed railway land and arrangements for obtaining bank funding.
The meeting was informed that ML-1 has been divided into four major sections: Karachi-Rohri, Rohri-Multan, Multan-Lahore and Lahore-Peshawar. International financing is being pursued for the Karachi-Rohri section, while Pakistan is preparing financing arrangements from domestic resources for the remaining sections.
Asset Monetisation and Revenue Potential
The government has also been looking at ways to generate greater income from railway assets. Recently, Pakistan Railways increased annual lease revenue from 125 godowns at Badami Bagh, Lahore, from Rs72.2 million to Rs331.08 million through a transparent auction, demonstrating the potential for higher returns from commercial utilisation of railway property.
The push comes as Pakistan seeks financing for the broader ML-1 modernisation programme. The Asian Development Bank has reaffirmed its willingness to provide possible financial support, while Pakistan continues to work with development partners on the Karachi-Rohri section and financing options for the remaining corridor.
The government’s approach would allow Pakistan Railways to leverage underutilised land and property assets rather than relying entirely on conventional government funding or external borrowing. If implemented effectively, officials believe the strategy could create a recurring commercial revenue stream while supporting the modernisation of the country’s main railway corridor.
