Railways needs $35 billion for complete uplift, says minister

Published: May 19, 2017


LAHORE: Cash-strapped Pakistan Railways is likely to continue facing financial woes even after CPEC pours investments and upgrades to the tune of $10 billion to its infrastructure.

The blunt admission of how poor the state currently is came from federal minister Khawaja Saad Rafique who said that even $10 billion would be insufficient for an organisation as big as Pakistan Railways.

Rafique said that Railways needs $30 to $35 billion – approximately 10% of Pakistan’s economy – to upgrade its entire ecosystem and bring it at par with railway networks of developed countries.

Railways’ profit surges to Rs8.38b, NA told

“Previous governments failed to upgrade the railways network,” said Minister of Railways Rafique during a press conference on Thursday. “In fact, people looted the most out of this sector.”

A recent agreement under CPEC promises improvement in the railways infrastructure around ML-1, but Rafique, who has held this portfolio since 2013, said a revamp of the entire organisation needed around $35 billion. “And the cost will increase each passing day,” he added.

He said that currently, Railways is a 157-year old corporation on technology that is 100 years old. However, with the recent agreements under CPEC, improvements in railways infrastructure will be seen.

Pakistan Railways has signed a frame work agreement with the Chinese ministry of transport to upgrade ML-1, covering Karachi-Peshawar track. The cost of this project is estimated at around $10 billion and it includes doubling the entire track for faster transportation of passenger as well as goods trains. The existing speed of trains on ML-1 stands in between 60km/h to 120km/h, which, after up gradation, will run in-between 120km/h to 160km/h.

Other than up-gradation; the project includes renovation of Karachi cantonment and Lahore railways stations as per international standards, construction of walls on populous areas along the track, fixing the issues of un-manned level crossings, up-gradation of rolling stock which includes locomotives, as well as freight coaches, construction of Havelian terminal and up-gradation of Walton academy.

China will also construct mass transit railways network in metropolitan cities of the four provinces.

Rafique added that the Asian Development Bank has agreed to grant a long-term concessional loan to railways to open another 11 lines, which will be built on the Built-Operate-Transfer mode.

“After signing these agreements, the next step for us is to wait for financial closures, we will try our best that the interest rates do not go above 2%,” Rafique said.

“Timeline of this project is from five to six years, and once completed it will bring positive results in railways network and ultimately, to the overall economy,” he added.

Govt determined to make Railways ‘the best’

Rafique said growth in revenues is not enough to transform Pakistan Railways. “We have managed to earn Rs36 billion in the last fiscal year. But one needs to understand that 74% of revenue goes to financing salary and pension expenditures. Around 15.75% is spent on fuel and the residual has to manage all other expenses.”

Published in The Express Tribune, May 19th, 2017.

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Reader Comments (3)

  • BrainBro
    May 19, 2017 - 10:03AM

    Sell both PIA and Railways to China. End of discussion.Recommend

  • AQ
    May 19, 2017 - 11:16AM

    Saying after 4 and half years of corruption in Railway, he suddenly wakes up and thought I need money to fix it? where he has been spending all budget of railway ministry all these years: Corrupt Rafique corrupt Govt. 1.8 Trillion dollars are going to extract from Pakistanis in last 6 months of PMLN govt. see what is their idea of running government.

    All these year they can’t even go beyond 2 Metrobus projects and Highway construction. (CPEC is not their effort btw, its Army and China). and now in 6 months they want 1.8 Trillion for development, of what? their personal accounts and their wealth. And BTW fiscal deficit is now soaring to 205% record all time high. You know this Fiscal Deficit is also extracted from pockets of people of Pakistan. Even when a poor man buys a pack of milk for his dying kid, he has to pay for their corruption. Shame on PMLN, You are real enemy pf Pakistan.Recommend

  • Rai
    May 20, 2017 - 3:39PM

    PR had thousands passengers in a day for 24 hour if they setup a video,music,social media,apps,SMS,voice like a data network and provide WiFi during journey but all browsing will be through their network PR can earn millions per months with little bit investment like blogging,affiliate marketing etc.because PR have much population.

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