Pakistan seeks expanded ADB financing for ML-1, public-private projects

Pakistan has asked the Asian Development Bank (ADB) to expand its financing support for public-private partnership projects, including the $10 billion Main Line-1 (ML-1) railway project connecting Karachi and Peshawar.

 

An ADB delegation led by Yingming Yang, Vice President for South, Central and West Asia, is in Islamabad for follow-up discussions on the bank's $10 billion Country Partnership Strategy for Pakistan for 2026-30, approved earlier this year.

 

The delegation held separate meetings with Economic Affairs Minister Ahad Khan Cheema and Finance Minister Muhammad Aurangzeb to discuss development priorities, financing opportunities and ongoing economic reforms.

 

Pakistan has already secured $2 billion in ADB financing for the Karachi-Rohri section of the 1,670-kilometre ML-1 project. The government is now exploring additional financing facilities, including guarantees and other innovative instruments to support large infrastructure and private-sector projects.

 

During his meeting with the ADB delegation, Cheema highlighted ML-1 as a flagship national project and said the government was prioritising privatisation, public-private partnerships and the development of commercially viable projects.

 

He also urged the ADB to increase its Private Sector Operations in Pakistan, while stressing the importance of stronger project implementation and institutional reforms.

 

Yang welcomed improvements in Pakistan's sovereign credit ratings and acknowledged progress toward macroeconomic stability. He also appreciated the government's efforts to strengthen project readiness and its initiative to introduce innovative financing instruments, including policy-based guarantees and guarantees supporting Panda bond issuance.

 

The ADB vice president also acknowledged the progress made on ML-1 and reaffirmed the bank's commitment to supporting the project and facilitating its early groundbreaking.

 

The ADB proposed establishing a dedicated working group to address institutional reforms within Pakistan Railways, with the initiative expected to begin shortly.

 

In a separate meeting with Finance Minister Muhammad Aurangzeb, Yang also recognised improvements in fiscal management, the external account and overall economic stability, saying the progress reflected Pakistan's ongoing reform efforts and strengthening economic fundamentals.