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

Pakistan is exploring private investment options for the upgradation of the Rohri-Multan section of the railway network, with the project estimated to cost over Rs450 billion.

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• According to official announcements, civil work on phase one of ML-1 is targeted to commence in January 2027.

For context, the move comes after China declined to finance the entire Main Line-1 project. The first phase of ML-1 from Karachi to Rohri/Sukkur will now be financed by international creditors, including the Asian Development Bank, at an estimated cost of $2.5 billion.

According to official announcements, civil work on phase one of ML-1 is targeted to commence in January 2027. The administration is additionally exploring co-financing options with other international lenders, including the World Bank, the Asian Infrastructure Investment Bank and the Islamic Development Bank. Date Confirmed for Construction of 3 New Underpasses in Rawalpindi.

Planning Minister Ahsan Iqbal chaired a session of the committee formed on the prime minister's directions to explore financing options for the Rohri-Multan section. He remarked the upgradation and modernisation of ML-1 is a key administration priority and pressed a comprehensive and viable financing strategy.

Notably, the session reviewed a number of financing options, including the Public Sector Development Programme, foreign financing, public-private partnership models, local commercial bank funding and domestic capital markets.

Authorities additionally discussed a proposal by the Frontier Works Organization to develop the Rohri-Multan section through private investment. They informed the session that the estimated cost of the section is over Rs450 billion.

In practice, the committee was briefed on the poor condition of the railway line and the accidents linked to its deteriorating infrastructure. It was informed that in the last 10 years, 399 train derailments and 158 other accidents were documented on the section.

Meanwhile, the minister remarked work on the Karachi-Rohri railway section, backed by ADB financing, will commence during the current fiscal year. He directed the relevant authorities to complete all preparatory measures in time. Pakistan Railways Orders Crackdown on Land Grabbing, Smuggling.

For the Rohri-Multan section, Ahsan Iqbal directed that a comprehensive feasibility study be carried out by a credible and independent third party to assess the project's technical, financial and economic viability and to support develop a workable financing model. Stay Connected with ProPakistani.

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Taken together, the developments around govt Seeks Rs. 450 Billion Private Investment to Upgrade Major Railway Track point to a situation that is still moving, and the coming days should bring more clarity.