Pakistan is seeking $2.5 billion from a consortium of international lenders to finance the first phase of the Main Line 1 (ML-1) railway project, with the Asian Development Bank (ADB) expected to take the lead.
According to reports, ADB could provide more than $1 billion of the total financing, while other lenders, including the Asian Infrastructure Investment Bank (AIIB) and World Bank, are expected to participate in the consortium.
The $2.5 billion financing requirement will be arranged in tranches, Economic Affairs Minister Senator Ahad Cheema said separately. He was speaking after a meeting with an ADB delegation that reviewed progress on the ML 1 project.
The ADB told the meeting that its technical team and project consultants were working on the project and that efforts were underway to finalize the project design in October. Once the design is completed, the bank will work with the government to move ahead with procurement and other preparations.
Cheema stressed the need for close coordination among all stakeholders to keep the project on schedule. He also assured the ADB delegation that the government would complete its requirements on time and provide the necessary support.
The ML 1 project has faced repeated delays in securing financing. It was initially conceived under the National Trade Corridor and later became part of the China Pakistan Economic Corridor, but financing arrangements were not finalized.
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