ML-1 Railway Project 2026: Why It Left CPEC and What Comes Next
Pakistan's largest railway modernization plan just changed course. Here's exactly what was announced, why the China-backed financing didn't materialize, who is funding it now, and what it actually means for anyone who rides the Karachi–Peshawar main line.
Quick Summary
- • ML-1 is the planned rebuild of the entire Karachi–Peshawar main railway line.
- • On July 3, 2026, the government confirmed to a Senate committee that ML-1 has been separated from CPEC because financing terms with China were never finalized.
- • The Asian Development Bank is now the expected lead financier, starting with the Rohri–Karachi section (~$2 billion, phase one).
- • Groundbreaking is officially targeted for early 2027, per Federal Planning Minister Ahsan Iqbal.
- • The project is not cancelled — it's being refinanced and re-sequenced.
What Is the ML-1 Project, Exactly?
Main Line-1, universally shortened to ML-1, is the 1,726-kilometer railway corridor connecting Karachi to Peshawar via Hyderabad, Rohri, Multan, Lahore, and Rawalpindi. It carries the overwhelming majority of Pakistan Railways' passenger and freight traffic, including flagship trains like Green Line Express, Tezgam, and Khyber Mail. The problem is that most of this track dates back decades, with sections still operating well below modern speed standards, aging signaling equipment, and single-line bottlenecks that force trains to wait for oncoming traffic.
ML-1 is the plan to fix all of that: new welded rail, upgraded ballast and bridges, computerized signaling, selective double-tracking, and grade-separated crossings. Done in full, it is designed to roughly double average operating speeds and significantly expand freight throughput — which is why it has been described for years as Pakistan Railways' single most important infrastructure project.
The News: ML-1 Separated From CPEC
On July 3, 2026, Economic Affairs Secretary Hameer Karim told the Senate Standing Committee on Economic Affairs that ML-1 — originally planned as a flagship China-Pakistan Economic Corridor (CPEC) project priced at roughly $7.7 billion — is no longer part of the CPEC financing framework. Years of negotiation with Chinese lenders over loan terms, interest rates, and repayment structures did not produce a signed financing agreement, so the government has formally shifted its strategy.
This does not mean the project is dead. It means Pakistan is now pursuing financing from multilateral development banks instead of a single bilateral lender — a fairly common pivot for large infrastructure projects when bilateral terms stall.
Sources: ProPakistani, Business Recorder
Who's Financing ML-1 Now?
Asian Development Bank (ADB)
Expected lead financier for Phase 1, the Rohri–Karachi section, estimated at roughly $2 billion.
Asian Infrastructure Investment Bank (AIIB)
In active discussions to co-finance alongside the ADB.
Islamic Development Bank (IsDB)
Also named as a potential co-financing partner for later phases.
Government of Pakistan
Continues to provide counterpart funding and manages procurement through Pakistan Railways.
Timeline: When Does Construction Start?
Rohri–Karachi section (Phase 1)
Prioritized as the first construction phase; ADB financing being finalized.
Groundbreaking target
Early 2027, according to Federal Planning Minister Ahsan Iqbal (statement reported July 2026).
Remaining sections (Rohri–Lahore, Lahore–Peshawar)
To follow in later phases as financing for each stretch is arranged.
Large infrastructure timelines in Pakistan have historically slipped before — treat 2027 as the current official target, not a fixed guarantee. We'll update this article as the situation develops.
What This Actually Means for Passengers
None of this changes anything about your ticket or your train tomorrow — ML-1 is a multi-year infrastructure build, not a switch that flips overnight. But once sections open, here's the realistic upside:
- Shorter journey times on upgraded stretches as track quality allows higher sustained speeds instead of today's frequent slow zones.
- Better punctuality from modern signaling that reduces the manual coordination delays common on single-line sections today.
- More freight capacity, which indirectly benefits passenger scheduling by separating slow freight movements from express passenger paths.
- Rollout will be gradual — expect the Rohri–Karachi section to see benefits first, with the Lahore–Peshawar stretch following in later phases.
Track the Official Record
For primary reporting on this story, see Dawn's coverage of the groundbreaking timeline and The Express Tribune's report on the CPEC framework change. We'll revise this guide as Pakistan Railways and the Ministry of Planning release further updates.
Frequently Asked Questions
Frequently Asked Questions
Click on a question to expand the answer
ML-1 (Main Line-1) is Pakistan Railways’ flagship modernization project to rebuild and upgrade the 1,726km Karachi-to-Peshawar main line — the busiest corridor on the network. The plan includes replacing worn-out track, modern signaling, stronger bridges, and double-tracking key sections so trains can run faster and more reliably, cutting travel times and boosting freight capacity.
No. ML-1 has not been cancelled — it has been separated from the China-Pakistan Economic Corridor (CPEC) financing framework because Pakistan and China could not finalize loan terms. The government is now pursuing financing from the Asian Development Bank (ADB), with the Asian Infrastructure Investment Bank (AIIB) and Islamic Development Bank (IsDB) also in talks to co-finance the project.
The full project was originally estimated at around $7.7 billion under CPEC. With financing now shifting away from China, the government is pursuing a phased approach — the first phase (the Rohri–Karachi section) is estimated to need roughly $2 billion, expected to be led by the ADB alongside other multilateral lenders.
As of mid-2026, officials including Federal Planning Minister Ahsan Iqbal have indicated groundbreaking is targeted for early 2027, starting with the Rohri–Karachi section. Large infrastructure projects in Pakistan have historically faced delays, so treat this as the current official target rather than a guarantee.
There’s no indication that ML-1 financing will directly raise passenger fares — it’s a capital infrastructure loan, separate from day-to-day fare-setting. Fares are adjusted periodically based on fuel and operating costs, as they always have been, independent of this project.
Large sections of the current Karachi–Peshawar line restrict trains to well under 100km/h due to aging track and infrastructure. ML-1’s design targets allow significantly higher operating speeds once upgraded sections open, which over time should shorten journey times on routes like Karachi–Lahore and Lahore–Peshawar — though realistic gains will roll out corridor-by-corridor as construction phases complete, not all at once.
Track Today's Trains on the Current Network
While ML-1 takes shape over the coming years, RailTracking.pk gives you live positions and ETAs for every train running today.