The decision by Executive Committee of National Economic Council (Ecnec) to defer approval of the $6.7 billion Mainline-I (ML-I) project under the China-Pakistan Economic Corridor (CPEC) once again underscores uncertainties surrounding the rail project. This initiative, intended to modernise Pakistan Railways, has been beleaguered by delays for almost a decade. The latest directive from Ecnec to Pakistan Railways to explore smaller-scale projects signals a shift towards phased implementation, indicating challenges in securing sufficient financing for the project in its entirety.
The significance of ML-1 project cannot be overstated. As the main artery connecting Karachi in the south to Peshawar in the north, passing through major cities, its upgradation is crucial for revamping the entire railway network. Pakistan Railways at present is grappling with a host of challenges including financial woes, infrastructural decay and inefficiency. Its aging infrastructure and lack of technological upgrades have rendered the system unreliable and increasingly unsafe. The existing tracks are incapable of supporting high-speed trains and signal systems are woefully outdated. Furthermore, there is a severe shortage of modern locomotives and carriages. This inadequate infrastructure not only hampers operational efficiency but also poses significant safety risks. Modernising the railway infrastructure is not just desirable but an urgent necessity.
Given current situation, breaking down the ML-1 project into smaller, more manageable segments appears to be a pragmatic approach. This strategy could facilitate phased financing and implementation, making it easier to secure investments. Pakistan Railways possesses land worth billions of rupees, which can be leveraged to generate resources for the ML-1 upgradation. Additionally, seeking investments from other friendly countries alongside China could diversify funding sources. Public-private partnerships (PPP) could also play a crucial role in this endeavour. Smaller projects are more likely to attract private investors and can be executed concurrently, accelerating overall modernisation process. This approach would not only expedite completion of ML-1 upgradation but also provide a template for future infrastructural projects in the country.
In our view, revitalisation of Pakistan Railways through ML-1 project holds the promise of transforming our transportation landscape. Enhanced connectivity will not only improve domestic travel and trade but also pave the way for extending railway network to Afghanistan and Central Asian states. Such an extension could position Pakistan as a key regional trade hub, unlocking immense economic potential.
In addition, work on road infrastructure projects also needs to accelerated. During its meeting, the ECNEC cleared the realignment of KKH between Thakot and Raikot at the cost of 13.067bn yuan as well as revised PC-I of New Gwadar International Airport. Indeed, these two projects are of immense significance in terms of connectivity and promotion of trade. A fully functional, all-weather KKH is crucial for enhanced China-Pakistan economic and commercial relations. Similarly New Gwadar International Airport becoming operational will significantly contribute to enhanced trade activities at deep-sea Gwadar Port, boosting trade and economic activity in the region.
