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Pakistan, China agree to advance ML-1, Karakoram Highway projects

September 08, 2025

Ayesha Saba

Pakistan and China have pledged to transform Gwadar into a regional connectivity hub and advance major transport projects, including the upgrade of ML-1 railway and the realignment of the Karakoram Highway, under the China-Pakistan Action Plan (2025–2029).

The official document available with Wealth Pakistan underscores the importance of integrating Gwadar Port with the New Gwadar International Airport, ensuring better use of port facilities and developing port-related industries. Specific measures include enhancing commercial functions of the port, exploring the East Bay Expressway Phase II, and leveraging Gwadar’s location for trade with Afghanistan, Central Asia and beyond.

Both governments agreed that Gwadar’s optimal development will strengthen regional connectivity and create new opportunities for economic growth. The plan also emphasizes the use of marine resources for local development and the integration of Gwadar’s free zone with broader trade corridors.

Transport infrastructure has been highlighted as another priority. The two sides reaffirmed their commitment to the upgrade of the ML-1 railway line under a “practical, feasible and sustainable financing and implementation plan.” The action plan also calls for advancing discussions on the realignment of the Karakoram Highway (Thakot–Raikot section), to be carried out in a phased manner.

Importantly, the plan notes that third-party participation is under consideration for these large-scale projects, to ensure long-term sustainability and broaden the base of cooperation. Officials from both countries said these initiatives would significantly improve Pakistan’s connectivity with neighboring regions, while reinforcing CPEC’s role as a driver of regional integration and development.

Credit: INP-WealthPk