ISLAMABAD: Pakistan is seeking investment from Saudi Arabia and the United Arab Emirates (UAE) to modernize its aging railway network, with officials estimating that $2.5 billion is needed for an upgrade of the key Multan–Lahore section, Railways Minister Hanif Abbasi told Arab News this week.
The South Asian nation’s railway system, much of it dating back to the 19th-century British colonial era, has long awaited large-scale modernization. Successive governments have looked to foreign partners to finance improvements, with projects promised under the China–Pakistan Economic Corridor (CPEC) still largely stalled.
An overhaul of more than 1,800 kilometers of track has been billed as the centerpiece of a $60 billion CPEC package first announced in 2015, but no financing deal has materialized. Meanwhile, the Asian Development Bank has separately signaled interest in funding rail upgrades, including a $2 billion Karachi–Rohri project, according to recent reports.
“I am going to Saudi Arabia for two days on October 19-20. I am going to the UAE from September 30 to October 2, and I am going to France on October 24. All these things are related to railways,” Abbasi said. “So, we will meet the Saudis there and try to have Saudi investment, because this is the right time for every country, for every investor to invest in Pakistan Railways.”
Asked what proposals Pakistan would extend to Saudi Arabia, Abbasi said:
“I think that if they come to Multan–Lahore [route], or Lahore–Rawalpindi, it is an offer from us.”
He said Pakistan would present a build–operate–transfer model to potential Gulf investors.
“We have a model: built–operate transfer. We will give them that place for 25 years. We will give them that section. They will come and talk to us.”
Abbasi said similar proposals had been offered to the UAE.
“We have offered them to invest in Multan and Lahore. We need around $2.5 billion for Multan and Lahore,” he said.
The minister also confirmed meetings with officials of Mashreq Bank, a Dubai-based institution that recently launched Shariah-compliant digital services in Pakistan. While Mashreq’s immediate focus has been on digital banking, Abbasi said discussions had included possible rail sector opportunities.
