Govt Seeks Rs. 450 Billion Private Investment to Upgrade Major Railway Track

Pakistan is seeking private investment of over Rs450 billion to upgrade the Rohri-Multan railway section, following China's decision not to fund the Main Line-1 project. The first phase of ML-1, between Karachi and Rohri/Sukkur, will be funded by international creditors, including the Asian Development Bank, at an estimated $2.5 billion.

The government is also exploring co-financing with other international lenders such as the World Bank, Asian Infrastructure Investment Bank, and Islamic Development Bank. Planning Minister Ahsan Iqbal led a meeting to explore financing options for the Rohri-Multan section, which is estimated to cost over Rs450 billion. The committee reviewed various financing possibilities, including the Public Sector Development Programme, foreign financing, public-private partnership models, funding from local commercial banks, and domestic capital markets.

The committee was briefed on the poor condition of the railway line, with 399 train derailments and 158 accidents reported in the last decade. The Minister directed authorities to complete preparatory measures for the Karachi-Rohri railway section, financed by ADB, during the current fiscal year. For the Rohri-Multan section, a comprehensive feasibility study will be conducted by an independent third party to assess the project's viability and help develop a financing model.