Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal, while chairing a meeting of the committee constituted on the directions of the Prime Minister to explore financing options for the Rohri-Multan section of the ML-1 project, said that upgradation and modernization of the ML-1 railway line is a key priority of the government and called for a comprehensive and viable financing strategy for the project.
The meeting reviewed various financing options for the completion of the ML-1 project, including the Public Sector Development Programme (PSDP), foreign financing, public-private partnership (PPP), financing through local commercial banks and the domestic capital markets. The committee also deliberated on the formulation of a comprehensive and firm financing plan for the completion of the project.
The meeting was also briefed on the proposal of the Frontier Works Organization (FWO) to develop the Rohri-Multan section of ML-1 through private investment. The meeting was informed that the estimated cost of the Rohri-Multan section is over Rs450 billion.
The meeting was further briefed on the condition of the railway line and accidents attributed to its deteriorated infrastructure. It was informed that during the past ten years, 399 incidents of train derailments occurred due to the deteriorated condition of the railway line, while 158 accidents were also reported during the period.
Ahsan Iqbal said that upgradation and modernization of the ML-1 railway line is a priority of the government. He emphasized that 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.
The Federal Minister said that work on the Karachi-Rohri railway section with ADB financing will commence during the current fiscal year, directing the relevant authorities to complete all necessary preparatory measures in a timely manner.
Regarding the Rohri-Multan section, Ahsan Iqbal directed that a comprehensive feasibility study be conducted by a credible and independent third party to determine the project’s technical, financial and economic viability and facilitate the development of a viable financing model.
The Minister directed the Ministry of Railways to comprehensively assess future requirements for locomotives, freight rolling stock and passenger coaches, including the financing needed, and incorporate them into an integrated plan for a modern and efficient railway system.
Ahsan Iqbal observed that continued reductions in the development budget are affecting projects of national and public importance, underscoring the need to make effective use of available resources and explore alternative financing mechanisms.
He said that ML-1 is not merely a railway infrastructure project but a major national initiative with significant implications for Pakistan’s transport network, trade, industry and economic activity. Its timely and effective completion would contribute significantly to modernizing the country’s transportation system.
Senior officials from the relevant Ministries and organizations attended the meeting and held detailed discussions on financing options for ML-1 project, development of the Rohri-Multan section, the feasibility study and future requirements of the railway sector.
