International lenders eye $6.8 bn Karachi-Peshawar rail upgrade after China pulls out
The Asian Development Bank and World Bank are among financiers considering the $6.8 bn Main Line-1 railway project, which now includes broader reforms for Pakistan Railways.
A delegation from the Economic Affairs Division, led by Secretary Humair Karim, informed the National Assembly’s Standing Committee on Economic Affairs that the Asian Development Bank is being positioned as the primary financier for the Main Line-1 railway, while the Asian Infrastructure Investment Bank and World Bank have pledged co-funding. The project’s budget has been trimmed to about $6.8 bn, a reduction from the previous $9 bn estimate, and includes upgrades to allow trains to run at 160 km/h, though operational speeds are currently planned at 120 km/h. Beyond track work, the plan incorporates institutional and operational reforms aimed at improving Pakistan Railways’ overall performance. The committee also raised concerns about the K-IV water supply project for Karachi, urging faster resolution of technical and financing issues, and noted a prime-ministerial directive to accelerate stalled projects involving the UAE and other partners.
Why it matters
Securing new financing could revive Pakistan’s flagship rail corridor and address critical infrastructure gaps.
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