Pakistan, China agree on $7B ML-1 railway project

Pakistan and China have agreed to form a consortium of local and international partners to finance the $7 billion Mainline-1 (ML-1) railway project. They also finalized a four-year action plan (2025–29) for the second phase of the China-Pakistan Economic Corridor (CPEC).

The announcement came on Monday from Planning and Development Minister Ahsan Iqbal during a press conference. He explained that the consortium will include the Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), China, and Pakistan as main financiers for the 1,700-km Karachi–Peshawar railway line.

Minister Iqbal confirmed that China had assured funding not just for ML-1 but also for the Karakoram Highway. He said talks with financiers are expected to wrap up within a month.

While criticizing the previous government, he remarked that both the ML-1 and Sukkur–Hyderabad Motorway projects would already be finished if not for the political changes in 2018. He accused the PTI government of derailing progress, saying it “destroyed the process.”

He also highlighted the new four-year CPEC action plan (2025–29), which aims to build a “China-Pakistan community with a shared future.” This plan focuses on stronger political trust, closer trade, deeper security cooperation, and more people-to-people exchanges.

Key areas such as agriculture modernization and industrial development will be prioritized, with opportunities for third-party participation. The next meeting of the Joint Cooperation Council (JCC) will take place on September 26 in Beijing, where more details will be finalized.

Calling it a “solid development,” Minister Iqbal said this plan reflects the leadership-level vision of two “time-tested, friendly countries.”

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