Pakistan explores private and bank financing to restructure railway network
By The South Asia Times
ISLAMABAD - Pakistan is exploring public-private partnerships, commercial bank loans and international funding to modernise and restructure its state-run railway network, with a particular focus on securing financing for a key section of the Main Line-1 (ML-1) project.
Deputy Prime Minister and Foreign Minister Ishaq Dar chaired a meeting on Wednesday to review proposals for revamping Pakistan Railways and assess financing arrangements and operational models aimed at upgrading infrastructure and ensuring the railway system's long-term financial sustainability, the Foreign Ministry said.
Participants examined several restructuring options, including public-private partnerships, domestic bank financing and international funding mechanisms.
Dar stressed that a modern, efficient and financially sustainable railway network was essential for Pakistan's economic integration and regional connectivity.
He directed relevant ministries and financial institutions to explore all available funding options, particularly commercial bank financing for the Rohri-Multan section of the Main Line-1 project, to help ensure its implementation.
The meeting was attended by Special Assistant to the Prime Minister Tariq Bajwa, the governor of the State Bank of Pakistan, the secretaries of railways and the Economic Affairs Division, the Special Secretary Finance, and representatives of relevant ministries and departments.
Pakistan Railways has long faced challenges related to ageing infrastructure, financial constraints and operational efficiency. Modernising its main railway corridors is considered important for improving passenger and freight transport and strengthening links between the country's major economic centres.
