The federal cabinet has approved negotiations on the Financial Commitment Agreement for the ML-1 Railway Project, a pivotal part of the China-Pakistan Economic Corridor (CPEC). Chaired by Prime Minister Shehbaz Sharif, the cabinet meeting in Islamabad emphasized the importance of finalizing the state-of-the-art ML-1 Railway Project agreement and resubmitting it for cabinet approval.
The ML-1 Railway Project, a strategic infrastructure development between the two nations, gained momentum after the federal government’s approval of the annual plan for budget 2024-25, marking the start of the second phase of CPEC implementation.
Spanning 1,726 kilometers, the ML-1 Railway Project will significantly enhance the country’s logistics performance once completed. China has committed to providing financing support, including favorable loan terms, for the ML-1 Railway Project. The upgraded railway line is designed for a maximum speed of 160 km/h on the new tracks, with operational speeds set at 120 km/h.
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This modernization will increase the existing ML-1 Railway Project’s capacity from 34 to 120 trains per day, addressing the needs of a growing population. Additionally, the ML-1 Railway Project will boost passenger handling capacity from 29 million to 170 million and freight capacity from 8 million to 43 million tons, meeting the country’s transportation needs for the next 25 to 30 years.
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Furthermore, a separate PC-I of approximately Rs36 billion is in process to address the security infrastructure of the ML-1 Railway Project. The ML-1 Railway Project remains a top priority in the bilateral cooperation between China and Pakistan, encompassing diverse sectors such as industry, agriculture modernization, infrastructure, and energy.
