News
Pakistan Reveals $2.1 Billion ML-I Railway Phase-I Cost as Government Explores Railway Land Financing
By Mariam Khan
Real Estate Analyst
3 min read
ShareWhatsApp
News
By Mariam Khan
Real Estate Analyst
3 min read
The federal government has told the Senate that the first phase of the Mainline-I (ML-I) railway project, covering the 480-kilometre Karachi–Rohri section, is estimated to cost $2.1 billion. The figures were reported on October 31, 2026. Prime Minister Shehbaz Sharif has also set up a committee to examine financing arrangements for the project's second phase. No final financing agreement and no confirmed start of construction were reported. Parliamentary records are published by the Senate of Pakistan.
The Karachi–Rohri section is 480 kilometres, and the estimate is $2.1 billion. That averages about $4.4 million per kilometre (our own calculation), but it is only a rough figure, since the estimate may include stations, signalling and other works. The reports do not break the cost down. Construction is expected to begin during the current fiscal year, subject to approvals, financing and procurement. That is an expectation and not a start date. Railway operations are published by Pakistan Railways.
The Multan–Rohri section has an estimated cost of Rs470 billion under a proposed construction model. This is stated in rupees, while Phase I is in dollars, so the two should not be added or compared directly. The reports do not describe the proposed construction model. The committee set up by the Prime Minister is to examine how the second phase could be financed.
Authorities are examining whether railway land could be used as collateral to obtain financing. The government is also considering alternative financing arrangements because of existing funding constraints. The reports do not say which land would be used, how it would be valued or who would lend against it. This is under examination. No decision has been announced.
The reports do not give the funding sources for Phase I, the contractors or the completion date. They also do not say how Phase I relates to earlier ML-I estimates, so we do not compare them. Planning policy is published by the Planning Commission.
Railway modernisation could strengthen industrial connectivity and freight movement between major cities. The proposed use of railway land as collateral raises questions about the valuation of public land and about how infrastructure is financed. The reports do not link the project to land prices along the line, and we do not claim any effect.
Landowners near the corridor should wait for official notices on acquisition. Industrial and logistics businesses should not plan around a start date that has not been set. The signals to watch are the committee's recommendations, any financing agreement, a decision on using railway land as collateral, approvals for Phase I and the start of procurement.
Islamabad's Kashmir Chowk Underpass reaches 78% completion in just 20 days as CDA works toward its 30-day target, with road surfacing and lighting pending.
Karachi residents plan to challenge the Nehr-e-Khayyam project over drainage and flooding concerns as construction reportedly reaches 80% completion.
Pakistan allocates Rs900 million for Hazara Motorway E-35 repairs after ground settlement and road depressions are identified at multiple locations.
Pakistan raises diesel prices by Rs2.29 to Rs402.96 per litre, while petrol remains at Rs377.91, potentially affecting construction and transport costs.