KARACHI – Pakistan Railways is set for a long-awaited revival as the government secures a $2 billion investment from the Asian Development Bank (ADB). The funding aims to overhaul a struggling system that once served as the backbone of national transport and trade.
A New Push for ML-1 Upgrade
For decades, Pakistan Railways has faced underinvestment, crumbling infrastructure, and financing delays under the China-Pakistan Economic Corridor (CPEC). The ADB package will prioritize the long-stalled upgrade of the Karachi-to-Peshawar Main Line-1 (ML-1), the busiest corridor in the country.
Currently, the railway carries about 70 million passengers annually but operates on century-old tracks and outdated signaling systems. Freight, once the financial lifeline of the railway, has collapsed to less than 10% of operations, forcing industries to rely on costly road transport. Logistics expenses are now 35% higher than the South Asian average, hurting exporters in sectors like textiles and agriculture.
Key Features of the ADB Program
The ADB-backed modernization plan will focus on:
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Rehabilitation of ML-1 for faster, safer train services
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Dedicated freight corridors to shift cargo back to rail
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Digital monitoring systems for efficiency and transparency
If executed properly, trains could run at speeds up to 160 km/h, cutting travel times nearly in half. Restored freight services would ease highway congestion and reduce trucking costs, making exports more competitive.
Boost for Exporters and Economy
The impact on Pakistan’s export-driven industries could be transformative. The textile sector, which contributes nearly 60% of export earnings, would benefit from faster connectivity between Karachi Port, Faisalabad, and Multan.
Economists also predict a ripple effect:
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Job creation in construction and operations
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Increased demand for steel and cement
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Energy savings, as trains consume less fuel than trucks
Challenges of Debt and Governance
Despite optimism, challenges remain. Pakistan’s external debt has surpassed $130 billion, raising questions about repayment capacity, even for concessional loans. Analysts caution that inefficiency, corruption, and bureaucratic hurdles could derail progress unless strict oversight mechanisms are enforced.
Transparency advocates are urging independent monitoring to ensure funds are used effectively and project milestones are met.
China Steps Back, ADB Steps In
Geopolitically, ADB’s entry marks a shift. China, once expected to bankroll ML-1 entirely under CPEC, has slowed disbursements amid Pakistan’s fiscal woes and its own changing priorities. While Beijing has not abandoned CPEC, analysts suggest it is recalibrating its role, creating space for multilateral lenders like ADB to fill the gap.
Lessons from South Asia
Other South Asian countries, including India and Bangladesh, have already leveraged ADB support to modernize their rail networks with measurable results. For Pakistan, success will depend not only on funding but also on transparency, reform, and private sector participation.
A Chance to Reclaim Lost Glory
If executed efficiently, the ADB’s $2 billion lifeline could finally put Pakistan Railways back on track. Faster journeys, safer travel, lower transport costs, and renewed freight capacity would restore the railway’s role as a vital driver of connectivity and economic growth.
