Pakistan Secures $2 Billion ADB Loan to Fast-Track ML-1 Karachi-Rohri Railway Upgrade. -

In a major move to modernize national infrastructure, Pakistan’s Ministry of Railways is in advanced negotiations with the Asian Development Bank (ADB) for a $2 billion loan package. The project centers on the strategic Karachi-Rohri section of the Main Line-1 (ML-1), a 480-kilometer artery critical for both passenger travel and freight transport, including minerals from the Reko Diq mine.

Key Highlights of the Deal

Funding Breakdown: The ADB has approved a $2 billion loan for this segment, which is expected to cut travel time between Karachi and Rohri by at least five hours.
Global Collaboration: To fund the broader ML-1 project, Pakistan is coordinating a consortium that includes the ADB, the Asian Infrastructure Investment Bank (AIIB), and the European Investment Bank (EIB).
CPEC Integration: Planning Minister Ahsan Iqbal recently reviewed the project, emphasizing its alignment with CPEC 2.0. Groundwork for the Karachi-Rohri section is scheduled to begin in July 2026.
Enhanced Capacity: The upgrade will allow train speeds to increase from the current 40 km/h to up to 120 km/h, significantly boosting the capacity of passenger and freight services.
Modernization & Oversight: Beyond track construction, the initiative includes the digitization of railway systems, installation of a 1,700-kilometer fiber optic network, and the conversion of 155 stations to solar energy.
Reko Diq Connection: This section is vital for transporting copper and gold from the Reko Diq mine in Balochistan to Port Qasim in Karachi, with the project aimed for completion by December 2028.