Pakistan and China have signed the ML-1 railways agreement.
The document was signed by Prime Minister Imran Khan and his counterpart Li Keqiang in Beijing on Sunday.
In a statement from Beijing, Minister for Railways Sheikh Rashid Ahmed said it is a great day in history of Pakistan Railways.
He said under the project a double track from Peshawar to Karachi will be laid.
The Minister said speed of train on new track will be 160 kilometer per hour.