Revival of ML-1 Railway Project: A Pathway to Economic Transformation

Pakistan’s long-awaited Main Line-1 (ML-1) railway project is now taking shape, a crucial step towards modernising the country’s transportation infrastructure and improving economic linkages. This massive project, approved by the coalition government led by Prime Minister Shehbaz Sharif in September 2023, is expected to be carried out in conjunction with China under the auspices of the China-Pakistan Economic Corridor (CPEC). The ML-1 project, initially proposed years ago, is again regaining attention, thanks to increased political resolve and economic necessity.

The ML-1 project has seen a repeating pattern of approvals and delays under successive Pakistani administrations. It was initially introduced during the Pakistan Muslim League-Nawaz (PML-N) government of then-Prime Minister Nawaz Sharif. Later, the Pakistan Tehreek-e-Insaf (PTI) administration of Imran Khan, as well as the following Pakistan Democratic Movement (PDM) rule, promised to relaunch the project. Despite repeated guarantees, the project remained on hold owing to political instability, budgetary restrictions, and difficulties in obtaining foreign finance.

In 2023, Shehbaz Sharif’s administration took a bold step to advance the ML-1 project. During a critical cabinet meeting, the coalition government approved a proposal to begin discussions on a Financial Commitment Agreement between Pakistan Railways and China. This deal is essential because it establishes the framework for getting the funds required to repair Pakistan’s railway infrastructure. The ML-1 project is designed to alleviate Pakistan’s long-standing difficulties with railway connectivity, modernisation, and economic integration.

The ML-1 project is more than just an infrastructure update; it is an important part of Pakistan’s long-term economic strategy. This railway line, which spans 1,700 km from Karachi to Peshawar, connects significant economic hubs throughout the country, including major towns like Karachi, Multan, Lahore, and Peshawar. Upgrading this line would greatly improve trade, mobility, and regional connection, providing a vital lifeline for both local and international business.

Pakistan’s railway infrastructure has endured neglect, underfunding, and inadequate maintenance, resulting in decreased train speeds, obsolete lines, and numerous accidents. The ML-1 project calls for the building of an extra track, allowing for simultaneous north-south traffic and updated signaling systems to provide smoother, quicker, and safer operations. Trains might go up to 160 km per hour once completed, significantly cutting travel times and enhancing passenger and freight service efficiency.

This railway line is not only a domestic project; it is also part of the wider CPEC framework, connecting Pakistan more efficiently to China’s Belt and Road Initiative (BRI). By modernising the ML-1, Pakistan presents itself as a key transit country in the area, boosting commerce between China, Central Asia, and the Middle East. The project has the potential to significantly improve regional connectivity by opening up new opportunities for economic integration and geopolitical collaboration.

The ML-1 project’s finance has proven to be one of its most difficult challenges. The initial cost estimate was $9.85 billion, which sparked worries given Pakistan’s dire economic state and increasing debt. However, following extensive discussions between Pakistan and China, the cost was lowered to $6.68 billion. This change was made by trimming several project components. During the Belt and Road Initiative (BRI) summit in October 2023, representatives from both countries signed an amendment to formalise the transfer.

China is likely to contribute the majority of the finance in the form of concessional loans, which is a normal procedure in BRI projects. Planning Minister Ahsan Iqbal acknowledged that the Pakistani government has finalised the majority of the arrangements with the Chinese authorities, however, talks on the particular loan terms continue. China’s funding for the project demonstrates its commitment to Pakistan’s infrastructure development within the CPEC framework, as well as its larger plan to improve regional connectivity.

Despite the lower cost, the ML-1 project’s financial feasibility remains debatable. Critics believe that taking on extra debt during economic hardship will put more weight on Pakistan’s already overloaded economy. Proponents of the project, including the government, argue that the long-term benefits—improved trade routes, increased production, and job creation—far exceed the current financial problems. Furthermore, the project is being carried out in stages, allowing for improved financial management and risk reduction.

The ML-1 project will be completed in phases, each focusing on a separate segment of the railway. The first phase, which will begin this year, entails installing new rails between Karachi and Multan, a vital business route. This stretch will comprise crucial sub-segments like Karachi to Hyderabad and Hyderabad to Sukkur, which had previously been prone to railway bottlenecks and delays.

After the first phase, the government would focus on renovating the segment between Lahore and Peshawar in the second phase. This staged strategy makes the project more controllable and financially viable, guaranteeing that the economic advantages may materialise even before the full line is complete.

The resumption of the ML-1 project is consistent with the government’s overall economic policy. Prime Minister Shehbaz Sharif has presented a five-year “Home Grown Economic Revival Plan,” which aims to enhance exports, agriculture, and manufacturing while emphasising youth empowerment via skill development and vocational training. The ML-1 project supplements this approach by establishing the infrastructure to support increased commerce and industrial activities.

Improved railway connections will improve the flow of goods and people, lowering transportation costs and allowing for more efficient supply chains. This might be especially useful to Pakistan’s agricultural economy, which depends significantly on timely and cost-effective shipping to export goods. Furthermore, modernising the railway industry has the potential to produce thousands of employment, both during construction and in the long run, helping the government achieve its aim of youth empowerment and economic growth.

The relaunch of the ML-1 project represents a watershed moment in Pakistan’s drive to modernise its infrastructure and promote economic growth. While the project has hurdles, notably in funding and implementation, the potential advantages are enormous. The ML-1 project, which aims to improve internal mobility and regional trade networks, is expected to be a cornerstone of Pakistan’s future economic strategy.

By resuming this long-delayed project, the coalition government has demonstrated its commitment to resolving the country’s infrastructure shortages and capitalising on the possibilities afforded by CPEC. If carried out effectively, the ML-1 might change Pakistan’s railway network, leading the country to greater economic development and regional connectivity.