CPEC: Pakistan, China to sign agreement for ML-1 project in first week of August

Islamabad: Pakistan and China are expected to sign an agreement for the Main Line-1 (ML-1) railway project in the first week of August under the China-Pakistan Economic Corridor (CPEC), officials said.

Federal Minister for Railways Khawaja Saad Rafique maintained that the work on the ML-1 project will commence by the end of the year, with hopes of finalizing the agreement on the project soon.

Other government officials told Gwadar Pro that the agreement will be signed in the first week of August.

The project involves upgrading and doubling the 1733-kilometre railway track from Karachi to Peshawar and installing modern signalling and telecom systems, enabling trains to run at 140 kilometers per hour.

The cost of the ambitious project has been reduced to US $6.5 billion from US $8 billion, with Pakistan providing 15% of the financing.

The fencing plan for the entire railway track has been postponed, and overhead bridges will be constructed and railway crossings closed in populated areas in the first phase.

In October 2020, Pakistan and China had agreed to start a US $10 billion Mainline-1 (ML-1) railway project from Karachi to Peshawar and extending CPEC’s scope from government-to-government to business-to-business cooperation.

The project will be completed at the cost of US $6.5 billion under the agreement which was reduced from US $8 billion.

Pakistan will provide 15% financing for the project.

In the first phase, overhead bridges will be constructed and railway crossings will be closed in populated areas.

Pakistan and China had signed the ML-1 framework in May 2017 and the Executive Committee of the National Economic Council (ECNEC) approved the project in August 2020.