The ML-I project will be finished in two stages: sources

ISAMBAD: China and Pakistan have agreed to split the 6.8 billion dollar mainline (ML-1) railway project into two stages, according to local sources.

For the ML-1 railway project’s Phases I and II, the parties will sign two distinct agreements, according to sources in the finance ministry.

“The 3.2 billion dollar Phase-I agreement is probably going to be signed within the next month,” according to insiders.

After the first phase of the project is finished, a feasibility study will be conducted before the Phase-II agreement, according to further sources.

“A railway line from Karachi to Hyderabad and Hyderabad to Multan will be completed in the first phase,” sources say.

“A railway track from Multan to Peshawar will be constructed in the second phase of the ML-I,” according to sources.

With the Chinese officials, the terms and circumstances of the financing will be agreed this month. “China will be the source of long-term funding for the ML-I Phase I.”

Sources stated that Pakistan planned to obtain a low-interest loan from China for the mainline project.

According to insiders, Pakistan was talking with China earlier for a 6.8 billion dollar funding deal for the ML-I. Ministry sources also said that the parties were unable to reach a consensus on a single agreement for the entire project.

Under the flagship CPEC project, the ML-I project, which aims to develop and renovate the Karachi-Lahore-Peshawar railway track, is organized.

The 1,872 km total length is the basis for the ML-I project. The project’s high price and extensive work, which required the main railway line to be extended and renovated, had previously led the PML-N administration to split it in two.