By Ijaz Kakakhel

Work on the Karachi-Rohri section of Pakistan Railways’ Main Line-I (ML-I) project is progressing, as the detailed engineering design has been completed and financing arrangements are being pursued with major international development partners, according to official documents available with Wealth Pakistan.

In its response to a recommendation of the National Assembly Standing Committee on Economic Affairs Division, the Ministry of Railways has said the Asian Development Bank (ADB) is leading financing arrangements for the Karachi-Rohri section, while the Asian Infrastructure Investment Bank (AIIB) and World Bank have committed to co-financing the project.

The European Investment Bank (EIB), Islamic Development Bank (IsDB) and Japan International Cooperation Agency (JICA) have also shown interest in the project, indicating broader development-partner engagement in the proposed railway upgrade.

According to the ministry, financing is being structured through ADB’s Multitranch Financing Facility (MFF). As an initial step, ADB approved a $10 million Project Readiness Financing (PRF) loan on November 20, 2025, which was subsequently signed on December 5, 2025.

The PRF is financing detailed engineering design and due diligence needed to prepare the Karachi-Rohri section for the main financing and implementation stages.

The ministry said the project’s final cost, interest rate, financing terms and repayment obligations under the main financing facility would be firmed up after completion of the design process and conclusion of loan negotiations. The details will be shared with the parliamentary committee once finalised.

Meanwhile, financing options for the remaining sections of ML-I beyond Karachi-Rohri are also being explored with development partners.

The ministry said approval for ADB and AIIB financing of the Karachi-Rohri section was granted on August 8, 2025.

Procurement of consultancy services under the PRF has also been completed through a competitive process involving expressions of interest and technical and financial bid evaluation with ADB’s no-objection process. The consultancy contract was signed with Dohwa Engineering Co., Ltd. on June 5, 2026.

The Ministry of Railways and Economic Affairs Division have also taken up the project’s progress at senior levels to accelerate processing. The matter was discussed at the ministerial level on July 14, 2026, followed by a meeting between the Deputy Prime Minister and an ADB vice-president in Manila on July 22, where the bank was requested to expedite the process.

An ADB-led inception mission was subsequently held from August 3 to 11, 2026, to review progress on the detailed engineering design, safeguards, procurement and overall implementation readiness.

A wrap-up meeting was also held on August 10 to assess progress and chart the way forward.

Credit: INP-WealthPk