PM Shehbaz Meets ADB Vice President to Accelerate Karachi‑Peshawar ML‑1 Railway Groundbreaking
Prime Minister Shehbaz Sharif urged Asian Development Bank Vice‑President Yingming Yang to fast‑track financing and early groundbreaking of the $10 billion ML‑1 railway upgrade, a key infrastructure project under CPEC.
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Transport, Steel and Cement sectors benefit from the railway upgrade; Buy bias on related tickers.
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Sectors: Transport, Steel, Cement, Banks — Positive · Buy bias. PSX tickers: MEBL, MCB, UBL, HBL, BAHL, FABL. Transport, Steel and Cement sectors benefit from the railway upgrade; Buy bias on related tickers.
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Open on Dawn## Meeting Overview
On 4 September 2026, Prime Minister Muhammad Shehbaz Sharif held talks with Asian Development Bank (ADB) South, Central and West Asia Vice‑President Yingming Yang in Islamabad. The discussion centred on the urgent need to commence the Karachi‑Peshawar Main Line‑1 (ML‑1) railway modernization.
## Project Significance
The ML‑1 upgrade, a 1,670‑km rail corridor, is deemed a vital national infrastructure priority. The government argues that modernising the line will improve freight logistics, boost regional trade connectivity and underpin major industrial initiatives across the country.
## Financing Landscape
The $10 billion project is structured as a public‑private partnership. Pakistan has already secured $2 billion from ADB for the Karachi‑Rohri segment, which is under construction. While China remains a financing partner under the CPEC framework, the government is seeking scaled‑up ADB financing for the initial phase to mitigate the impact of rolling over existing Chinese loans.
## Broader Cooperation
Beyond the railway, the two leaders reviewed the ADB Country Partnership Strategy (CPS) 2026‑2030, which aims to channel about $10 billion into Pakistan over five years. They also explored joint initiatives in energy security, food security, export competitiveness, artificial intelligence and information technology.
## Outlook
The PM praised ADB’s professionalism and expressed confidence that the partnership will translate strategic priorities into tangible results, supporting Pakistan’s transition to sustainable, inclusive growth.
## Next Steps
The meeting concluded with a mutual pledge to accelerate the ML‑1 groundbreaking, targeting early‑next‑year commencement for the first phase, and to continue dialogue on broader economic cooperation.