Pakistan has finalized financial terms with China to upgrade the Main Line-1 (ML-1) railway, seen as a crucial infrastructure project as part of the China-Pakistan Economic Corridor (CPEC) which is set to transform the country's transportation sector.
Valued at 6.8 billion U.S. dollars, the ML-1 project aims to modernize Pakistan's aging infrastructure, with a primary focus on upgrading the crucial rail link connecting southern Karachi and northwestern Peshawar. This is expected to slash travel times and boost the efficient movement of passengers and cargo across the country.
The financing deal was reached at a recent CPEC meeting held just ahead of Chinese Premier Li Qiang's trip to Pakistan, where he is attending the 23rd Meeting of the Council of Heads of Government of Member States of the Shanghai Cooperation Organization (SCO) on Tuesday and Wednesday.
Launched in 2013, the CPEC, a flagship project of the China-proposed Belt and Road Initiative (BRI), is a corridor linking the Gwadar Port in southwest Pakistan's Balochistan province with Kashgar in northwest China's Xinjiang Uygur Autonomous Region, which highlights energy, transport, and industrial cooperation.
As part of Pakistan’s border connectivity strategy with Central Asia, the ML-1 upgrade is expected to strengthen the country’s internal logistics network and create new investment and trade opportunities by providing seamless rail and road access to Central Asian states through Pakistan’s northern regions.
Experts believe China's substantial investment in CPEC is helping Pakistan lay a solid economic foundation and unlock significant opportunities.
"Previously, it was only the road network that was being connected. Now, it has also been decided that the railway [network between] the SCO member states also would be connected. In that context, Pakistan's project under CPEC, the ML-1, which means 'Main Line 1' that goes from Peshawar to Karachi, is being upgraded," said Babar Amin, Pakistan's First National Coordinator for the SCO, and also former Pakistani Ambassador to Norway.
"As far as the ML-1 project is concerned, this will be a very important project signed under the SCO because I think it will be the first major project and the first major initiative undertaken by the SCO," said Dr. Uzma Siraj, head of the international relations department at the Federal Urdu University.
The project is expected to stimulate economic activity, advance regional collaboration, and expand trade opportunities between South Asia, Central Asia, and beyond, further elevating the geo-economic importance of China's Belt and Road Initiative with Pakistan serving as a key transit hub.
Pakistan seals major deal with China to upgrade key rail link under CPEC
