Pakistan, UAE to collaborate on Karachi-Peshawar railway upgrade, says envoy

Pakistan's Minister of State for Finance and Railways, Bilal Azhar Kiyani (center) in conversation with CEO Etihad Rail, Shadi Malak (left) in Abu Dhabi, UAE, on October 2, 2025. (@BilalAKayani/X)
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Updated 02 October 2025
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Pakistan, UAE to collaborate on Karachi-Peshawar railway upgrade, says envoy

  • ML-1 project to modernize and dual-track 1,872 km Karachi-Peshawar line for freight, passengers
  • Pakistan’s railways minister is in Abu Dhabi for Global Rail 2025, meeting his regional counterparts

ISLAMABAD: Pakistan’s envoy to the United Arab Emirates (UAE) said on Thursday Pakistan and the UAE plan to collaborate and share expertise in the railway sector, adding that the Gulf state is already involved in the Main Line-1 (ML-1) project and that Islamabad is in contact with Etihad Rail in this connection.

The ML-1 project is Pakistan’s largest railway infrastructure upgrade involving the modernization and dual-tracking of the 1,872 km Karachi-Peshawar railway line, including signaling upgrades, bridges, stations and speed enhancements.

Together with ML-3, which links Quetta to Kotri via Jacobabad, the two railway lines are viewed as pivotal for regional connectivity by expanding freight capacity and shortening travel time.

The Pakistani envoy’s statement came as a delegation from his country, led by Minister of State for Finance and Railways Bilal Azhar Kiyani, participated in the Global Rail Conference and Exhibition 2025, which started in Abu Dhabi on Sept. 30 and concluded on Oct. 2.

“This was a great opportunity for Pakistan to showcase its central position between Central Asia, South Asia and the Middle East,” Faisal Niaz Tirmizi, Pakistan’s ambassador to the UAE, told Arab News.

“Both countries will share experiences and best practices, as the UAE is already involved in the ML-1 section and the government of Pakistan is in touch with Etihad Rail in this regard,” he said while sharing the details of Kiyani’s visit.

The global transport summit has brought together over 24 ministerial delegations, more than 60 global CEOs and 200 international speakers from across the world under the theme “Driving the Future of Transport and Global Connectivity.”

Hosted by Etihad Rail in collaboration with the UAE Ministry of Energy and Infrastructure, the event featured over 200 exhibiting companies and attracted more than 20,000 participants, serving as a global platform for strategic dialogue, project showcases and shaping the future of rail and infrastructure.

“Now, it’s an opportunity for all countries to look for connectivity and the cheapest mode of transportation of goods in the world after sea freight, which is railway,” the envoy said, adding that railway is also environmentally friendly.

He said the Pakistani state minister also had an opportunity to take a ride on the fast track which was set up between Abu Dhabi and Dubai and will become operational in 2026.

“It took him 35 minutes to travel from Abu Dhabi to Dubai on the new railway track,” he added.

Tirmizi said Kiyani also chaired a session attended by railway ministers from several friendly nations, including Egypt, Saudi Arabia, Qatar, Oman, Bahrain, Jordan, Afghanistan, Turkmenistan and Uzbekistan.

The ambassador said the Pakistani minister also held a meeting with UAE President Sheikh Mohammed bin Zayed Al Nahyan during which he emphasized the need for greater collaboration between the two countries in governance, electricity, railways and investment.

“Overall, this [event] has had a tremendous impact not only on bilateral relations but also on regional connectivity,” he added.

In a separate statement, Pakistan’s diplomatic mission in the UAE said Kiyani highlighted his country’s vision for transforming its railway sector into an efficient, reliable and environmentally sustainable backbone of national transport.

He particularly emphasized the upgradation of two major railway corridors, ML-1 and ML-3, while aligning Pakistan’s rail network with international standards.

“Pakistan’s active presence at the Global Rail Conference 2025 reflects its strong commitment to advancing sustainable transport solutions and forging strategic international partnerships that support long-term economic development and connectivity,” the statement added.

On the sidelines, the Pakistani minister also met Etihad Rail CEO Shadi Malak to discuss potential cooperation in freight logistics, technology exchange and network development.

He also visited Etihad Rail and Hafeet Rail exhibition stalls to review regional innovations in rail systems.


IMF board to approve Pakistan reviews today ‘if all goes well,’ say officials

Updated 08 December 2025
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IMF board to approve Pakistan reviews today ‘if all goes well,’ say officials

  • IMF’s executive board is scheduled to meet today to discuss the disbursement of $1.2 billion
  • Economists say the money will boost Pakistan’s forex reserves, send positive signals to investors

KARACHI: The International Monetary Fund’s (IMF) executive board is scheduled to meet today, Monday, to approve the release of about $1.2 billion for Pakistan under the lender’s two loan facilities, said IMF officials who requested not to be named.

The IMF officials confirmed the executive board was going to decide on the Fund’s second review under the $7 billion Extended Fund Facility (EFF) and first review under the $1.4 billion Resilience and Sustainability Facility (RSF), a financing tool that provides long-term, low-cost loans to help countries address climate risks.

“The board meeting will be taking place as planned,” an IMF official told Arab News.

“The board is on today yes as per the calendar,” said another.

A well-placed official at Pakistan’s finance ministry also confirmed the board meeting was scheduled today to discuss the next tranche for Pakistan.

The IMF executive board’s meeting comes nearly two months after a staff-level agreement (SLA) was signed between the two sides in October.

Procedurally, the SLAs are subject to approval by the executive board, though it is largely viewed as a formality.

“If all goes well, the reviews should pass,” said the second IMF official.

On approval, Pakistan will have access to about $1 billion under the EFF and about $200 million under the RSF, the IMF said in a statement in October after the SLA.

The fresh transfer will bring total disbursements under the two arrangements to about $3.3 billion, it added.

Experts see smooth sailing for Pakistan in terms of the passing of the two reviews, saying the IMF disbursements will help the cash-strapped nation to strengthen its balance of payments position.

Samiullah Tariq, group head of research at Pakistan Kuwait Investment Company Limited, said the IMF board’s approval will show that Pakistan’s economy is on the right path.

“It obviously will help strengthen [the country’s] external sector, the balance of payments,” he told Arab News.

Until recently, Pakistan grappled with a macroeconomic crisis that drained its financial resources and triggered a balance of payments crisis.

Pakistan has reported financial gains since 2022, recording current account surpluses and taming inflation that touched unprecedented levels in mid-2023.

Economists also viewed the IMF’s bailout packages as crucial for cash-strapped Pakistan, which has relied heavily on financing from bilateral partners such as Saudi Arabia, China and the United Arab Emirates, as well as multilateral lenders.

Saudi Arabia, through the Saudi Fund for Development, last week extended the term of its $3 billion deposit for another year to help Pakistan boost its foreign exchange reserves, which stood at $14.5 billion as of November 28, according to State Bank of Pakistan statements.

“In our view this [IMF tranche] will be approved,” said Shankar Talreja, head of research at Karachi-based brokerage Topline Securities Limited.

“This will help strengthen reserves and will eventually help a rating upgrade going forward,” he said.

The IMF board’s nod, Talreja said, would also send a signal to the international and local investors regarding the continuation of the reform agenda by Pakistan’s government.