PM Shehbaz urges early groundbreaking of $10bn ML‑1 railway project in talks with ADB
Prime Minister Muhammad Shehbaz Sharif met ADB Vice‑President Yingming Yang to push for an early start on the $10 billion ML‑1 railway upgrade, seeking multilateral financing alongside Chinese and local sources.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Positive · Buy bias
Infrastructure upgrade lifts Cement, Steel and Transport sectors – Buy bias on related tickers.
Sectors & Direction
Desk read
Desk call: Buy bias · Positively affected
- CementPositively affected
- SteelPositively affected
- TransportPositively affected
Companies
Mentions in This Briefing
Sectors: Cement, Steel, Transport — Positive · Buy bias. PSX tickers: MEBL, MCB, UBL, HBL, BAHL, FABL. Infrastructure upgrade lifts Cement, Steel and Transport sectors – Buy bias on related tickers.
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Open on Dawn## Meeting Overview
On 4 September 2026, Prime Minister Muhammad Shehbaz Sharif held a meeting in Islamabad with Asian Development Bank (ADB) Vice‑President Yingming Yang, the bank’s senior official for South, Central and West Asia. The discussion centred on fast‑tracking the modernisation of the Karachi‑Peshawar Main Line‑1 (ML‑1) railway, a flagship infrastructure project under the China‑Pakistan Economic Corridor (CPEC).
## Project Significance
The ML‑1 upgrade, valued at roughly US$10 billion, is deemed a “vital national infrastructure priority.” The government argues that a modernised railway will improve freight logistics, boost regional trade connectivity and underpin major industrial initiatives across the country.
## Financing Structure
Pakistan has already secured US$2 billion from ADB for the Karachi‑Rohri section of the 1,670‑km line, which is currently under implementation. The broader financing plan envisions a public‑private partnership model that blends Chinese, local and multilateral funding. While China remains a key partner under the CPEC framework, the government sees ADB financing as a prudent first‑phase catalyst, especially given the ongoing roll‑over of existing Chinese loans.
## Broader ADB Partnership
The meeting also reviewed the new Country Partnership Strategy (CPS) 2026‑2030, under which ADB will extend about US$10 billion to Pakistan over five years. The CPS aims to support sustainable, inclusive growth through private‑sector‑led development, covering sectors such as energy security, food security, export competitiveness, artificial intelligence and information technology.
## Government Outlook
PM Shehbaz highlighted recent macro‑economic stabilisation achieved through fiscal, structural and governance reforms, which have restored investor confidence and earned upgraded outlooks from Fitch, Moody’s and S&P. He pledged to dismantle administrative bottlenecks via dedicated execution task forces and to translate CPS priorities into tangible results.
## Next Steps
Both parties agreed to pursue early groundbreaking of the ML‑1 project, with the expectation that ADB financing will kick‑start the first phase while parallel negotiations with Chinese and local investors continue. The ADB delegation remains in Islamabad to follow up on the CPS implementation.
## Market Implications
The acceleration of the ML‑1 railway is likely to benefit sectors linked to construction, materials and logistics, including Cement, Steel and Transport. Improved freight efficiency may also support exporters and industrial firms listed on the PSX.