Tuesday, June 25, 2024

Pakistan, China to Sign New Agreement to Revive Karachi-Peshawar Railway (ML-1) Project

Pakistan and China are preparing to sign an additional agreement at the Belt and Road Forum. This agreement aims to reduce the cost of the ML-1 railway project by $3.3 billion, bringing the total cost down from $9.8 billion.

The updated plan splits the project into three phases, covering improvements to the railway line that runs from Karachi to Peshawar.

In the first phase, the focus will be on upgrading the tracks from Nawabshah to Rohri, Lahore to Multan, and Lahore to Lala Musa. These are important sections that need to be modernized to improve the overall efficiency of the railway network.

The second phase will concentrate on the sections from Kemari to Hyderabad and from Hyderabad to Multan. This part of the project is crucial for enhancing connectivity in these regions.

The third and final phase will involve the sections from Lala Musa to Rawalpindi and from Rawalpindi to Peshawar. Additionally, there will be upgrades to the Havelian Dry Port, which is an essential facility for handling cargo.

However, the project faces several challenges. One of the main issues is securing international financing to fund the upgrades. Another significant challenge is providing a sovereign guarantee, which is a promise by the government to support the project financially. Overcoming these obstacles is essential for the successful completion of the railway project.

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