ISLAMABAD(National Times)- The proposed construction of the 460km Rohri-Multan section of the long-delayed Karachi-Peshawar Main Line-1 railway project, estimated to cost more than Rs450 billion, came under review on Friday as the government explored financing options other than the long-awaited Chinese funding.
A high-level committee led by Planning and Development Minister Ahsan Iqbal did not clear the proposal prepared by the Frontier Works Organisation (FWO) after noting that the cost of locomotives, coaches and their operation would be over and above the Rs450bn estimate for the railway section.
The minister also ordered an independent third-party review of the cost estimates.
“The meeting was also briefed on the proposal of the Frontier Works Organisation (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,” an official statement said.
“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,” it added.
The committee also deliberated on the formulation of a comprehensive financing plan for the project.
The meeting was held by a committee constituted on the prime minister’s directions to explore financing options for the Rohri-Multan section.
Mr Iqbal said the upgradation and modernisation of ML-1 remained a key government priority and called for a viable financing strategy.
Sources said the minister expressed displeasure over participation by some ministries at the additional secretary level and directed that federal secretaries attend the committee’s next meeting.
The railways secretary was asked to come up with a proper estimate for locomotives, coaches and other rolling stock, along with financing options and an assessment of how much funding Pakistan Railways could generate through its own marketing plan.
Mr Iqbal also directed that a comprehensive feasibility study be conducted by a credible independent third party to assess the project’s technical, financial and economic viability and help develop a sustainable financing model. According to the statement, the Ministry of Railways was also asked to assess future requirements for locomotives, freight rolling stock and passenger coaches, including the financing required, and incorporate them into an integrated plan.
The minister observed that continued reductions in the development budget were affecting projects of national importance, underscoring the need to make better use of available resources and explore alternative financing mechanisms.
The meeting was also briefed on the condition of the railway track and accidents attributed to deteriorating infrastructure.
