Govt seeks fresh financing plan for ML-1 section

Govt seeks fresh financing plan for ML-1 section.

Key points

• The Newspaper's Staff Reporter Published August 29, 2026 Updated August 29, 2026 04: 54am.
• The session was additionally briefed on the proposal of the Frontier Works Organisation (FWO) to develop the Rohri-Multan section of ML-1 through private investment.
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• The session was held by a committee constituted on the prime minister's directions to explore financing options for the Rohri-Multan section.
• Mr Iqbal remarked the upgradation and modernisation of ML-1 remained a key administration priority and pressed a viable financing strategy.

For context, the Newspaper's Staff Reporter Published August 29, 2026 Updated August 29, 2026 04: 54am. Join our Whatsapp Channel. Add Dawn as a trusted source.

ISLAMABAD: The proposed construction of the 460km Rohri-Multan section of the long-delayed Karachi-Peshawar Main Line-1 railway project, estimated to cost more than Rs450 billion, came under review on Friday as the administration explored financing options other than the long-awaited Chinese funding.

In practice, a high-level committee led by Planning and Development Minister Ahsan Iqbal did not clear the proposal prepared by the Frontier Works Organisation (FWO) after noting that the cost of locomotives, coaches and their operation would be over and above the Rs450bn estimate for the railway section.

For context, the minister additionally ordered an independent third-party review of the cost estimates.

"The session was additionally briefed on the proposal of the Frontier Works Organisation (FWO) to develop the Rohri-Multan section of ML-1 through private investment. The session was informed that the estimated cost of the Rohri-Multan section is over Rs450 billion, " an official statement stated.

"The meeting reviewed various financing options for the completion of the ML-1 project, including the Public Sector Development Programme (PSDP), foreign financing, public-private partnership (PPP), financing through local commercial banks and the domestic capital markets, " it continued.

Notably, the committee additionally deliberated on the formulation of a comprehensive financing plan for the project.

In practice, the session was held by a committee constituted on the prime minister's directions to explore financing options for the Rohri-Multan section.

Sources remarked the minister expressed displeasure over participation by some ministries at the further secretary level and directed that federal secretaries attend the committee's next session.

Notably, the railways secretary was asked to come up with a proper estimate for locomotives, coaches and other rolling stock, along with financing options and an assessment of how much funding Pakistan Railways could generate through its own marketing plan.

Mr Iqbal additionally directed that a comprehensive feasibility study be conducted by a credible independent third party to assess the project's technical, financial and economic viability and assist develop a sustainable financing model. According to the statement, the Ministry of Railways was additionally asked to assess future requirements for locomotives, freight rolling stock and passenger coaches, including the financing required, and incorporate them into an integrated plan.

According to The minister, continued reductions in the development budget were affecting projects of national importance, underscoring the need to create better apply of available resources and explore alternative financing mechanisms.

Notably, the session was additionally briefed on the condition of the railway track and accidents attributed to deteriorating infrastructure. Published in Dawn, August 29th, 2026.

In short, govt seeks fresh financing plan for ML is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.