en.Wedoany.com Reported - Pakistan has allocated special funds in the Public Sector Development Programme for the fiscal year 2026/27 for railway modernization, industrial cooperation, policy research, and other related projects under the framework of China-Pakistan Economic Corridor (CPEC) 2.0, further promoting the high-quality development of CPEC into a new phase.

Among these, the railway sector remains a key investment direction. According to the plan, Pakistan will allocate 1.056 billion rupees (approximately $3.8 million) for the preliminary design, consulting services, and technical preparations of the ML-1 railway upgrade project and the Havelian Dry Port project. Additionally, the Ministry of Railways has received a special fund of 50 million rupees to implement CPEC support projects, enhancing railway project planning and execution capabilities.

The ML-1 railway project aims to modernize the 1,726-kilometer main railway line connecting Karachi and Peshawar. Upon completion, it is expected to handle 70% of the country's passenger and freight traffic. The Havelian station is the northern terminus of Pakistan's railway network, with plans to extend the railway northward through the China-Pakistan border port of Khunjerab to Kashgar. A dry port is proposed to be built in Havelian, primarily for container operations.

In May 2026, the Ministry of Railways unveiled the ML-1 railway project plan, which will be implemented in five phases. The first phase, the Karachi-Rohri section, is scheduled to commence construction later this year. The total investment for the project is estimated at approximately $6.66 billion, with financing to be sourced from multiple parties, including the Asian Development Bank.

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