Islamabad: Minister for Planning, Development and Special Initiatives, Ahsan Iqbal chaired a meeting to explore financing options for the Rohri to Multan section of the Main Line-1 (ML-1) railway project. The cost of this project is estimated at USD 6.8 billion by Executive Committee of the National Economic Council in 2020. The committee was constituted on the directives of Prime Minister (PM) Shehbaz Sharif to explore financing options
“Upgrading the ML-1 railways line is our priority,” Iqbal said, adding that work on the Karachi to Rohri section would commence during the current fiscal year. The Director General of the Frontier Works Organization (FWO) briefed the meeting on the possibility of constructing the Rohri to Multan section using private sector investment. The estimated cost of the section was stated to be more than PKR 450 billion. The minister directed that a feasibility study of the project should be conducted through a credible third party to ensure an objective assessment of its technical and financial viability.
He also directed the Ministry of Railways to complete its homework regarding the financing requirements for locomotives, cargo rolling stock and passenger coaches. “How much financing will be required for locomotives, cargo rolling stock and coaches?” the minister asked, directing the ministry to work out comprehensive financing requirements for the railway’s rolling stock needs.
Ahsan Iqbal observed that continued cuts in the development budget were adversely affecting projects of national and public importance. He stressed the need for exploring innovative financing options and greater private-sector participation to ensure timely implementation of strategically important railways infrastructure projects. The meeting was also informed that during the last 10 years, 399 train derailments and 158 accidents had occurred due to the deteriorating condition of the railway lines, highlighting the urgent need for upgrades.
