A high-level government committee has rejected a financing proposal for the Rohri-Multan section of the Main Line-1 (ML-1) railway project, citing concerns that the estimated cost did not include expenses for locomotives, passenger coaches and their operation.
The committee, headed by Planning and Development Minister Ahsan Iqbal, noted that the additional costs could push the project well beyond the estimated Rs450 billion.
Mr Iqbal also ordered an independent third-party assessment of the project’s cost estimates and feasibility.
The committee was briefed on a proposal by the Frontier Works Organisation (FWO) to develop the Rohri-Multan section through private investment. Officials said the estimated cost of the section exceeded Rs450bn.
Various financing options were discussed, including allocations through the Public Sector Development Programme, foreign funding, public-private partnerships, loans from local commercial banks and financing through domestic capital markets.
The committee was constituted on the prime minister’s directions to explore funding options for the Rohri-Multan section and develop a comprehensive financing strategy.
Mr Iqbal said the upgradation and modernisation of ML-1 remained a major government priority and stressed the need for a financially sustainable plan.
The minister directed the railways authorities to prepare detailed estimates for locomotives, coaches and other rolling stock, along with possible financing arrangements. Pakistan Railways was also asked to assess how much funding it could generate through its own commercial and marketing initiatives.
He further ordered an independent feasibility study covering the project’s technical, financial and economic aspects to help formulate a viable long-term financing model.
The Ministry of Railways was directed to assess future requirements for locomotives, freight wagons and passenger coaches and incorporate the funding needs into an integrated project plan.
Mr Iqbal expressed concern over continued cuts in the development budget, saying they were affecting nationally important projects. He called for more efficient use of available funds and greater reliance on alternative financing mechanisms.
The committee was also briefed on the deteriorating condition of railway tracks and accidents linked to ageing infrastructure.
