ISLAMABAD: Pakistan has proposed earmarking more than Rs46 billion ($165 million) for security during the construction of a proposed Rs278.6 billion ($995 million) railway upgrade linking the southern city of Rohri in Sindh province with the border town of Taftan in southwestern Balochistan, according to official planning documents seen by Arab News this week.
The railway project is considered critical to the development of the Reko Diq copper and gold mine, a joint venture between Canada’s Barrick Gold and the Pakistani government that is expected to generate tens of billions of dollars in exports over the coming decades.
The line would transport minerals from the mine while improving rail connectivity with neighboring Iran and Türkiye. More than Rs46 billion ($165 million) has been allocated for security alone, accounting for nearly 17 percent of the project’s estimated cost and reflecting persistent militant violence in Balochistan.
The Ministry of Planning has submitted the proposal to the Central Development Working Party (CDWP), a government body that reviews major public-sector development projects before they are approved for implementation.
“The existing road infrastructure in the region is incapable of handling the large-scale transportation requirements of the mining project,” the planning document says in justifying the railway upgrade.
“Roads are in poor condition, and their capacity is insufficient for the volume and weight of the ore to be transported. Therefore, a reliable Railway network is required for continued evacuation of minerals.”
The proposed project, scheduled to run from July 2026 to June 2033, would upgrade 996 kilometers of Pakistan Railways’ ML-3 corridor in two phases. It would be financed through a combination of federal Public Sector Development Programme (PSDP) funds and a proposed $390 million bridge financing arrangement from Reko Diq Mining Company (RDMC), which the government plans to repay by June 2028.
The scheme includes complete renewal of 831 kilometers of railway track, construction of 11 new stations, replacement of 304 turnouts, rehabilitation of bridges and embankments, and installation of modern communications systems and track machinery.
The document says the ML-3 route is strategically significant “not only for domestic logistics but also for regional connectivity, as it links Pakistan with Iran and Turkiye and through them to international markets in Europe and Central Asia.”
The large security allocation reflects continuing security challenges in Balochistan, where separatist militants have repeatedly targeted infrastructure projects, security forces and foreign interests.
Planning Commission reviewers, however, questioned several aspects of the proposal before recommending its approval.
According to the working paper, the sponsoring ministry did not submit a quantified cost-benefit analysis, making it impossible to assess the project’s financial viability.
Reviewers also sought detailed traffic and revenue projections, a revenue-sharing mechanism with RDMC and estimates for operation and maintenance costs after completion.
Officials further questioned whether projected demand justified increasing the corridor’s capacity from the current two train pairs to 26 train pairs and highlighted risks associated with repaying the proposed $390 million bridge financing.
Technical reviewers also asked the Railways Ministry to provide detailed engineering designs, justify project costs, clarify land availability, explain procurement and implementation plans, and outline security arrangements for operating trains through militancy-hit areas of Balochistan.
Arab News contacted Railways Minister Hanif Abbasi and Pakistan Railways Chairman Mazhar Ali Shah regarding the issues raised in the working paper but did not receive a response before publication.
Abbasi told Arab News last year that Reko Diq Mining Company, a joint venture between Canada’s Barrick Gold and Pakistan’s federal and Balochistan governments, had agreed to provide $390 million in bridge financing for the Rohri-Nokundi section of the line.
He also said the upgraded railway would transport around one million tons of copper annually, eliminating the need for more than 28,000 truck journeys each year.
The government, he added, had already agreed with RDMC that the state would be responsible for protecting the railway infrastructure.
“As far as the security is concerned, we have an agreement with RDMC as well. Track security will be the responsibility of the state. The Federal Constabulary will be deployed on these trains.”
