ISLAMABAD: Pakistan is seeking additional financing from the Asian Development Bank (ADB) for ML-1 project of Pakistan Railways. The additional funding is also required for other major infrastructure projects and public-private partnerships.
The request includes the $10 billion Karachi-Peshawar Main Railway Line project, known as ML-1, as the lender advances its new partnership strategy.
An ADB delegation led by Vice President for South, Central and West Asia Yingming Yang is visiting Islamabad for discussions.
The talks focus on Pakistan’s development priorities under the ADB’s $10 billion Country Partnership Strategy for 2026-2030.
The ADB board approved the five-year strategy in March, setting the framework for increased development cooperation with Pakistan.
Pakistan Explores Innovative Financing Options
The delegation separately met Economic Affairs Minister Ahad Khan Cheema and Finance Minister Muhammad Aurangzeb on Wednesday.
Pakistan has already secured $2 billion in ADB financing for the Karachi-Rohri section of the 1,670-kilometre ML-1 project.
Meanwhile, the Economic Affairs Division is discussing additional financing options, including guarantees and private sector partnerships.
Cheema urged the ADB to expand its private sector operations in Pakistan and described ML-1 as a national flagship project.
The government also briefed the delegation on fiscal, structural and governance reforms aimed at strengthening public-private partnerships.
Moreover, officials said Pakistan was improving project implementation and developing a pipeline of commercially viable projects.
The government also reaffirmed that privatization remains a key priority under its broader economic reform agenda.
ADB Welcomes Pakistan’s Economic Progress
Yang welcomed improvements in Pakistan’s sovereign credit ratings and progress toward greater macroeconomic stability.
He also recognized Pakistan’s efforts to improve project readiness and attract investment through stronger financing frameworks.
ADB’s Yang said Pakistan offers opportunities for innovative financing instruments, including policy-based guarantees and guarantees supporting Panda bond issuance.
