2026

With Pakistan's extensive railway renovations completed, the country's infrastructure is the best it has ever been. North-South rail traffic in the country has emerged as one of the most dominant modes of transportation for both passengers and freight, as the improved railways have cut the travel time between the northern terminus of Peshawar and the southern terminus of Karachi by more than half. Only one major rail project remains for the China-Pakistan Economic Corridor's infrastructure rail investments to complete: Main Line Five, or, the Khunjerab Railway.

Starting in the Islamabad suburb of Taxila, ML-5 travels north to Havelian (where a massive dry port has been constructed to facilitate the transition of cargo from standard gauge to broad gauge rail). From there, the railway passes through Abbottabad and Mansehra in Hazara Province before crossing into Balawaristan, running parallel to the Karakoram Highway on the way to the Chinese border crossing at Khunjerab Pass. From there, the line crosses into China, where it new rail construction running parallel to G314 will connect the line to Kashgar and, by extension, the larger Chinese and Central Asian rail networks. In total, the Pakistani section will run some ~600 kilometers, while the Chinese section runs ~380 kilometers. The Pakistani section between Besham City and Havelian will be dual gauge to allow it to be used for domestic Pakistani traffic, while the rest of the line will be standard gauge.

This rail line, when finished in 2030, will be the world's second highest railway--just marginally below the record-holding Qinghai-Tibet Railway in China. Given their experience in high-altitude railway construction, Chinese engineering firms will serve as the primary contractors on the project.

The primary benefit of the Khunjerab Railway will be the creation of a "backdoor" into China's western provinces and Central Asia, which will work in concert with the Quadrilateral Transit Trade Agreement and the Central Asian Transit Trade Agreement to significantly increase economic development in these regions. Geopolitically speaking, it will also provide Chinese trade an alternative route to the geographic chokepoint at the Strait of Malacca. Finally, it will make Chinese trade with the Middle East and East Africa cheaper and easier.

In addition to international trade, ML-5 and its branches will provide critical service to cities in northern Pakistan that were previously excluded from the rail system. The Islamabad-Muzaffarabad branch line connects Muzaffarabad to Abbottabad through ML-5, while the Peshawar-Abbottabad line follows ML-5 for part of its route.

Construction is expected to begin immediately after financing is secured, and will last four years. The railway is expected to cost a staggering 10b USD (building railways through the world's tallest mountain range isn't cheap!), with about 60 percent of that cost being for rail in Pakistan, and 40 percent being for rail in China. Pakistan is hoping that China will cover the Chinese section entirely, as well as providing a 1 percent interest loan with a 25 year term and 10 year grace period for 5b USD (83 percent) of the Pakistani section.