Consortium to fund Karachi-Peshawar railway line: China assures support for ML-1 and Karakoram Highway
ISLAMABAD: The federal government announced today that Pakistan and China had agreed to create a consortium of financiers for the $7 billion Mainline-1 (ML-1) railway project. The initiative will be supported by a four-year action plan under the second phase of the China-Pakistan Economic Corridor (CPEC).
Consortium for ML-1 Project
Planning and Development Minister Ahsan Iqbal confirmed the agreement at a news conference. He explained that during Prime Minister Shehbaz Sharif’s recent visit to China, both sides reached a consensus on financing. The consortium will include the Asian Development Bank (ADB), the Asian Infrastructure Investment Bank (AIIB), China, and Pakistan. It will jointly fund the 1,700-kilometre Karachi-Peshawar railway line. Negotiations with financiers will conclude within a month.
China Assures Broader Funding
Mr. Iqbal said China also assured financing for the Karakoram Highway. He argued that both ML-1 and the Sukkur-Hyderabad Motorway would already be complete if the 2018 political transition had not derailed progress. He blamed the PTI government for “destroying the process” and slowing down CPEC development.
CPEC Four-Year Action Plan
Pakistan and China also agreed on a four-year plan covering 2025 to 2029. The plan aims to build a “China-Pakistan community with a shared future” anchored in political trust, trade cooperation, security collaboration, and stronger people-to-people ties. Agriculture modernisation and industrialisation will take priority, with space for third-party participation.
The next Joint Cooperation Council (JCC) meeting of CPEC will take place on September 26 in Beijing. Both sides will discuss accelerating industrial park development, encouraging investment in special economic zones (SEZs) in Karachi and Islamabad, and offering preferential policies to investors.
Industrial and Agricultural Cooperation
The two countries agreed to leverage the Framework Agreement on Industrial Cooperation to boost industrialisation and exports. Chinese firms will be encouraged to invest in Pakistan’s mining sector and establish mining industrial parks. Cooperation will also expand in crop cultivation, animal husbandry, epidemic control, aquaculture, agro-processing, and seed technology.
Belt and Road Alignment
The action plan will align the Belt and Road Initiative (BRI) with Pakistan’s 5Es Framework. It envisions large-scale landmark projects alongside smaller livelihood initiatives, focusing on high-quality development and security.
