ISLAMABAD: After securing the approval of Prime Minister Shehbaz Sharif, the Planning Commission’s Central Development Working Party (CDWP) has approved two crucial projects for the long-delayed Main Line-1 (ML-1) railway upgrade, paving the way for joint financing by the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB).
The decision marks a major policy shift, as China — the original financier under the China-Pakistan Economic Corridor (CPEC) — had earlier resisted the involvement of other multilateral lenders. However, with Beijing reluctant to fully fund the $6.7 billion scheme, Islamabad has moved to diversify financial support with China’s consent.
At a meeting chaired by Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal, the CDWP approved the preliminary design and drawings for the ML-1 and Havelian Dry Port project worth Rs16.26 billion, referring it to the Executive Committee of the National Economic Council (ECNEC) for final approval.
In addition, the detailed engineering design of the Rohri–Khanpur–Multan section — costing Rs3.21 billion — was cleared with ADB’s financial backing, marking a milestone in advancing CPEC’s transport and logistics connectivity agenda.
Highlighting the project’s strategic importance, Minister Iqbal said the ML-1 initiative represents Pakistan’s “leap into the 21st century.” He emphasised that as the world transitions to electric trains, Pakistan must modernise its rail network to remain competitive. The minister also urged Pakistan Railways to implement a viable business plan and commercialise its extensive land assets to generate internal financing for future infrastructure upgrades.
Overall, the CDWP approved 18 development projects across various sectors. Of these, 12 projects worth Rs35.4 billion were cleared at the CDWP level, while six projects worth Rs280.2 billion were forwarded to ECNEC for final consideration.
The meeting was attended by Secretary Planning Awais Manzur Sumra, PIDE Vice Chancellor, the Chief Economist, and senior representatives from federal ministries, provincial departments, and development partners.
