China gives green light to third-party investment in ML-1 railway project
Business
ML-1 project is back on track — with China giving the nod to outside investors to chip in.
ISLAMABAD (Dunya News) – China has agreed to open the doors for third-party investment in the multi-billion-dollar Main Line-1 (ML-1) railway project stretching from Karachi to Peshawar.
The development came during the recent Pakistan-China Strategic Dialogue, jointly chaired by Deputy Prime Minister and Foreign Minister Ishaq Dar and the Chinese Foreign Minister.
According to sources, the Government of Pakistan has decided to bring more players to the table by engaging other investors alongside China. Preparations are underway to reach out to companies already investing in the Reko Diq project, with proposals soon to be shared.
Officials from the Ministry of Railways revealed that while the technical work has already been wrapped up, the financing side is still up in the air. The ML-1 project is considered a game-changer, not only to modernize the railway network but also to handle the expected flow of minerals from Reko Diq to Karachi and the ports once production kicks off in 2028.
Originally, the $6.8 billion project was to be bankrolled through China’s concessional loan. However, with financing hitting a snag, Pakistan and China have now agreed in principle to rope in a third party.
Read also: CPEC revival: Pakistan, China to accelerate work on ML-1, special economic zones
Under ML-1, major cities including Karachi, Hyderabad, Nawabshah, Rohri, Rahim Yar Khan, Bahawalpur, Khanewal, Sahiwal, Lahore, Gujranwala, Rawalpindi, and Peshawar will be linked through an upgraded double-track railway line.
In short, the ML-1 project is back on track — with China giving the nod to outside investors to chip in.
