Ishaq Dar delays ML-I project approval

The Mainline-I (ML-I) project under the China-Pakistan Economic Corridor (CPEC) has hit a roadblock as the Executive Committee of the National Economic Council (ECNEC) has deferred its approval. This decision, led by Deputy Prime Minister Ishaq Dar, was primarily due to financing issues. Dar has instructed the Railways Division to present a new summary with detailed financing plans and to break down the project into smaller, more manageable packages.

Despite initial confusion regarding the status of the project approval, Ishaq Dar confirmed that the ML-I project has indeed been sent back for further refinement. The Railways Division has been tasked with resubmitting the PC-I for the first phase, focusing on the Karachi-Multan section, which is estimated to cost $3.3 billion.

The ML-I project aims to upgrade Pakistan's railway track from Karachi to Peshawar. Initially approved at $9.9 billion two years ago, the project cost was revised to $6.7 billion following a request from China due to Pakistan's economic challenges. However, securing financing for the project remains a key hurdle, with China offering to finance the Karachi to Hyderabad segment while Pakistan seeks funding for the Karachi-Multan stretch.

The Railways Division's submission to ECNEC lacked secured finances from the Public Sector Development Programme, China, or any international financial institution. Additionally, the proposal included a reduction in the track length from 1,872 kilometers to 1,726 kilometers. Instead of presenting a phased approach, the Railways Division submitted the entire $6.7 billion project, prompting Dar to request a revised plan.

The delay in the approval of the ML-I project highlights the importance of detailed financing plans and phased project implementation. As Pakistan navigates economic challenges, collaboration with China under CPEC remains crucial for infrastructure development. Moving forward, breaking down large projects into manageable phases and securing financing will be key to ensuring the successful completion of vital infrastructure projects like the ML-I railway upgrade.