Rs450b ML-1 upgrade faces financing hurdle

Pakistan's railway infrastructure is in urgent need of modernisation, with 399 train derailments and 158 accidents reported over the past decade due to deteriorating track conditions, Planning Minister Ahsan Iqbal said on Friday as he reviewed financing options for the Rohri-Multan section of the ML-1 project.

Chairing a meeting of the committee constituted on the prime minister's directions to explore financing for the project, Iqbal said upgradation and modernisation of the ML-1 railway line is a key priority of the government and called for a comprehensive and viable financing strategy.

The meeting reviewed various financing options, including the Public Sector Development Programme (PSDP), foreign financing, public-private partnership (PPP), financing through local commercial banks and domestic capital markets. The committee also deliberated on formulating a comprehensive financing plan for the project.

The meeting was briefed on a proposal by the Frontier Works Organisation (FWO) to develop the Rohri-Multan section through private investment. The estimated cost of the section is over Rs450 billion.

Iqbal said a modern, safe and efficient railway system is essential for strengthening economic activity, improving passenger services and facilitating the movement of goods across the country.

He directed that work on the Karachi-Rohri railway section with Asian Development Bank (ADB) financing will commence during the current fiscal year and instructed authorities to complete all necessary preparatory measures in a timely manner.