One of Pakistan’s significant railway modernisation projects, the Main Line-1 (ML-1), planned under the China-Pakistan Economic Corridor (CPEC), is facing challenges due to the International Monetary Fund’s (IMF) conditions regarding sovereign guarantees.
The ML-1 project aims to modernise over 1,726 kilometers of colonial-era rail line from Karachi to Peshawar. However, the project is contingent on IMF approval and the finance ministry’s ability to provide sovereign guarantees for a USD 6.67 billion loan from China. The project’s budget has been reduced by 32 percent from its initial cost.
