Finance Agreement for Karachi-Peshawar (ML-1) Project Delayed Once Again

The financing agreement with China for Pakistan’s ML-1 railway project has been delayed once again due to the need for re-signing and adjustments to the project’s construction phases, sources in the Ministry of Planning told ProPakistani. Originally, the agreement for ML-1 Phase-1 was scheduled to be finalized in the last quarter of 2024. However, efforts by the Planning Commission and Economic Affairs Division to reach a consensus during this period were unsuccessful. Virtual negotiations are set to take place tomorrow, ahead of a visit by the Chinese technical team next month. Sources said the final feasibility study and details of the visit will be discussed in the virtual meeting, with the study’s schedule to be announced during the talks. The ML-1 agreement has now been divided into two phases. Following discussions at the Joint Working Group meeting, the agreement will proceed to the signing stage. The inauguration, initially planned for February 2025, will likely be postponed due to these delays.