The Pakistani government is intensifying efforts to finalize the financing agreement for the ML1 Railway Project, a crucial infrastructure initiative aimed at enhancing connectivity from Karachi to Peshawar. This push comes in anticipation of Chinese Prime Minister Li Qiang’s visit to Islamabad on October 14-15, 2024 for the Shanghai Cooperation Organisation (SCO) summit.
During a recent meeting focused on the China-Pakistan Economic Corridor (CPEC), Planning Minister Ahsan Iqbal urged the ministries of railways and finance to expedite the conclusion of financing terms with the Chinese side within the next few days. The urgency is underscored by the goal to announce the initiation of CPEC Phase-2 during this high-profile event.
The ML1 Railway Project is a key component of this initiative, with a total budget of $6.8 billion. The first phase of the project will connect Karachi to Multan, while the second phase will extend the railway link from Multan to Peshawar.
Minister Ahsan Iqbal emphasized the importance of resolving any outstanding issues with relevant stakeholders to ensure that as many memorandums of understanding (MoUs) as possible are signed during the Chinese Premier’s visit.
To facilitate this, Ahsan Iqbal instructed several ministries to streamline their proposals and projects, halting presentations from three ministries due to a lack of top-level representation.
The Ministry of Foreign Affairs was tasked with ensuring a smooth exchange of finalized drafts of MoUs and agreements with the Chinese delegation. A high-level review meeting was convened to align all relevant ministries in a unified approach towards strengthening Pakistan’s bilateral relations with China.
Officials from the ministries of information technology, maritime affairs, and information and broadcasting were asked to leave the meeting, as their ministers or federal secretaries were absent. However, the secretaries for information technology and information and broadcasting later participated via video link.
An official statement highlighted the discussions aimed at amplifying cross-sectoral cooperation, preparing a comprehensive action plan to advance bilateral economic and developmental goals, and leveraging the upcoming engagement with China to enhance business-to-business (B2B) investments.
Minister Ahsan Iqbal reiterated the importance of collaboration among all government sectors to unlock the full potential of the ML1 Railway Project and CPEC as a whole. He called on all ministries to finalize their preparations and proposals to ensure impactful outcomes from the forthcoming visit, showcasing Pakistan as a favorable investment destination.
