ISLAMABAD: Pakistan and the Asian Development Bank (ADB) on Friday signed three contracts for financing totalling $61.8 million (approximately Rs17 billion) to advance three development projects to the implementation stage, which include the $2 billion Karachi-Rohri section of the Main Line railway (ML-1).
An official statement said the two sides signed Project Readiness Financing (PRFs) papers for the Karachi-Rohri section of ML-1, Quetta Bus Rapid Transit and Balochistan Water Resources Development Sector – Additional financing.
Under these commitments, ADB would provide $10m to prepare project documentation for the $2bn ML-1 section, $3.8m for the $125m Quetta BRT, and $48m for Balochistan Water Resources Development.
At the signing ceremony, Secretary of Economic Affairs Humair Karim welcomed ADB’s support for these critical projects, which are aimed at significantly contributing to Pakistan’s long-term and sustainable economic growth, addressing the vital urban infrastructure needs of Quetta city, and enhancing agricultural productivity in Balochistan Province. He called upon the Ministry of Railways and the Government of Balochistan to utilise the financing in a timely and effective manner to ensure successful implementation.
ADB’s country director, Ms Emma Fan, appreciated the federal government’s strong commitment to these projects and noted that the Railways Improvement Project PRF was a key step toward railways modernisation.
The Central Development Working Party had last month approved the Rs1.24bn ($3.8m) ADB financing for a feasibility study, design, and procurement standards and documentation.
Also, last month, the federal government announced that it had secured a $2bn financing package from ADB to commence the Karachi-Rohri segment of the Karachi-Peshawar mainline (ML-1) next year, aiming to complete it before December 2028 to facilitate transportation from the multi-billion-dollar Reko Diq Copper and Gold Project.
Likewise, the ADB had last month approved $48m loan for the Balochistan Water project to support the completion of critical project components, including the Churi Infiltration Gallery subproject, development of the Siri Toi Dam command area, and watershed management activities, which were previously delayed due to budgetary constraints. These components are considered vital for enhancing irrigation efficiency, promoting sustainable water use, and mitigating soil erosion caused by floods.
Because of inherent project implementation challenges, the government has started raising international financing to avoid project delays and cost overruns. The ADB’s PRFs are normally intended to support project preparation before formal offtake, by identifying various components and activities during the implementation stage.
For example, the ML-1 PRF enables the ADB and Pakistan’s relevant agencies to work closely to improve implementation readiness and the timely processing of subsequent major loans needed for project execution. PRFs are also used for reform and institutional capacity-building activities to support sustainability, including the development of business plans, compliance with international financial reporting standards, digitisation, and consulting services.
According to the ADB, PRF is a fast and flexible modality that funds activities for project preparation, such as detailed engineering design, capacity building, limited project startup support, and project design pilot testing. Such work ensures high project readiness and minimises startup delays during the initial phase of project implementation.
Published in Dawn, December 6th, 2025
