In a significant move, the federal cabinet has given the go-ahead to initiate negotiations on the Financial Commitment Agreement between Pakistan Railways and China, aiming to upgrade the long-awaited Mainline-1 (ML-1) project. This development is a key component of the China-Pakistan Economic Corridor (CPEC).
The decision was made during a cabinet meeting on Friday, chaired by Prime Minister Shehbaz Sharif. The cabinet emphasized that the final agreement for this advanced railway project would be brought back for approval after negotiations are concluded.
The ML-1 project, spanning 1,726 kilometers, is a crucial infrastructure initiative that gained momentum following the federal government’s approval of the annual budget for 2024-25 in June. This marks the beginning of CPEC’s second phase, which focuses on enhancing bilateral cooperation across various sectors, including industrial development, agricultural modernization, socioeconomic growth, scientific research, infrastructure, and energy.
The project will be executed in three phases, with an upgraded railway system designed to support train speeds of up to 160 km/h and operational speeds set at 120 km/h. This upgrade will significantly boost Pakistan’s logistics capabilities, increasing the line’s capacity from 34 to 120 trains per day. The enhanced capacity is expected to accommodate future population growth, with a long-term perspective spanning the next 25 to 30 years.
Upon completion, the ML-1 is projected to dramatically increase its passenger handling capacity from the current 29 million to 170 million annually. Freight capacity is also set to rise, from 8 million to 43 million tons.
The Chinese government has committed to providing financial support for the ML-1 upgrade, potentially including loans on favorable terms. The details of this financing will be finalized through negotiations between the relevant departments of both countries.
However, some concerns have been raised by relevant ministries. Notably, the current PC-I for ML-1 does not account for the cost and scope of rolling stock and security infrastructure. A separate PC-I, estimated at around Rs36 billion, is being processed to address these security aspects.
The envisioned upgrade of ML-1 is expected to provide a combination of speed, reliability, and enhanced capacity in rail transport, meeting the country’s passenger and freight needs for decades to come.
