Pakistan Railways is set for a major revival as the government seeks a $2 billion investment from the Asian Development Bank (ADB) to modernise the Karachi-to-Peshawar Main Line-1 (ML-1) route.
Years of underinvestment, safety issues, and stalled Chinese funding left the national railway system struggling. Freight revenue has collapsed, and outdated tracks and signaling systems have pushed passengers and cargo onto highways, raising logistics costs.
Officials said the ADB package will focus on three areas: upgrading ML-1 for faster travel, creating a dedicated freight corridor, and introducing digital monitoring to improve safety and operational efficiency.
If implemented successfully, passenger trains could reach speeds of 160 km/h, cutting travel times by nearly half. The initiative also promises cheaper and faster logistics for exporters, particularly in the textile sector.
Economists believe the investment could generate tens of thousands of construction jobs and stimulate industries like steel, cement, and services. Rail modernisation could also reduce truck traffic, lowering fuel consumption and environmental impact.
Analysts caution that past projects suffered from inefficiency and bureaucratic delays. They stress that strong oversight, governance reforms, and private sector involvement are crucial to ensure the ADB funds produce meaningful results.
ADB’s support complements China’s selective investment in CPEC, allowing Pakistan to diversify funding sources. Observers note that modernising the railway network will not only restore national connectivity but also strengthen Pakistan’s role as a trade corridor linking South and Central Asia.