KARACHI: A key Pakistani committee operating under the planning ministry on Wednesday presented a modified project proposal for the upgrade of Pakistan Railways’ existing Main Line (ML-1) and the establishment of a dry port at a cost of $6.7 billion to the top economic oversight body for approval.
The ML-1 railway upgrade is among the biggest projects under the multibillion-dollar China-Pakistan Economic Corridor (CPEC), involving the rehabilitation and upgrading of the railway tracks from Karachi to Peshawar.
It is also viewed as a cornerstone of the CPEC initiative due to its scale and the significant impact it is expected to have on Pakistan’s infrastructure and regional economic connectivity.
According to a statement released by Pakistan’s planning ministry, the Central Development Working Party, which evaluates socio-economic development projects, presented a new document on ML-1 to the Executive Committee of the National Economic Council (ECNEC) as Pakistan and China discuss the second phase of CPEC.
“The [ML-1] project is proposed to be financed through foreign funding under the CPEC framework agreement,” said the statement circulated by the ministry. “Pakistan Railways infrastructure is more than a century old and has outlived its useful life.”
“The original track which was built in late 19th century and early 20th century had been designed for low speeds and lesser axle loads which do not commensurate with the present-day loading patterns and desired speeds,” it added. “The Government of Pakistan aims to build necessary logistics facilities to support GDP growth and, in this regard, it intends to up-grade and modernize Pakistan Railways Network.”
The ministry said Pakistan Railways had become a financial burden on the national exchequer, adding that the $6.7 billion project could also make it a more financially and socially viable organization.
It maintained the project could ensure reduction in transportation costs, safety in mobility and effective connectivity between rural areas and markets in urban centers.
Additionally, it would integrate road and rail networks among various economic hubs, including air, sea and dry ports, while creating high-speed and -capacity transportation corridors connecting major regional trading partners.
“To achieve the government’s objective, a major up-gradation of the railway system has been planned, including increasing speed of passenger and freight trains, doubling of tracks of the main line sections, and increasing line capacity so as to facilitate rail linkages to Central Asian States, China and other neighboring countries,” it said.
Pakistan plans $6.7 billion railway upgrade and dry port development project under CPEC
https://arab.news/pphzw
Pakistan plans $6.7 billion railway upgrade and dry port development project under CPEC
- Planning ministry says the project will create high-speed transportation corridors connecting regional partners
- The original railway tracks were built in late 19th century and were designed for low speeds and lesser axle loads
EU, Pakistan sign €60 million loan agreement for clean drinking water in Karachi
- Project will finance rehabilitation, construction of water treatment facilities in Karachi city, says European Investment Bank
- As per a report in 2023, 90 percent of water samples collected from various places in city was deemed unfit for drinking
ISLAMABAD: The European Investment Bank (EIB) and Pakistan’s government on Wednesday signed a €60 million loan agreement, the first between the two sides in a decade, to support the delivery of clean drinking water in Karachi, the EU said in a statement.
The Karachi Water Infrastructure Framework, approved in August this year by the EIB, will finance the rehabilitation and construction of water treatment facilities in Pakistan’s most populous city of Karachi to increase safe water supply and improve water security.
The agreement was signed between the two sides at the sidelines of the 15th Pak-EU Joint Commission in Brussels, state broadcaster Radio Pakistan reported.
“Today, the @EIB signed its first loan agreement with Pakistan in a decade: a €60 million loan supporting the delivery of clean drinking water for #Karachi,” the EU said on social media platform X.
Radio Pakistan said the agreement reflects Pakistan’s commitment to modernize essential urban services and promote climate-resilient infrastructure.
“The declaration demonstrates the continued momentum in Pakistan-EU cooperation and highlights shared priorities in sustainable development, public service delivery, and climate and environmental resilience,” it said.
Karachi has a chronic clean drinking water problem. As per a Karachi Water and Sewerage Corporation (KWSC) study conducted in 2023, 90 percent of water from samples collected from various places in the city was deemed unsafe for drinking purposes, contaminated with E. coli, coliform bacteria, and other harmful pathogens.
The problem has forced most residents of the city to get their water through drilled motor-operated wells (known as ‘bores’), even as groundwater in the coastal city tends to be salty and unfit for human consumption.
Other options for residents include either buying unfiltered water from private water tanker operators, who fill up at a network of legal and illegal water hydrants across the city, or buying it from reverse osmosis plants that they visit to fill up bottles or have delivered to their homes.
The EU provides Pakistan about €100 million annually in grants for development and cooperation. This includes efforts to achieve green inclusive growth, increase education and employment skills, promote good governance, human rights, rule of law and ensure sustainable management of natural resources.
