Pakistan Seeks Private Investment For Rohri-Multan Rail Project As China Limits Funding.
✧ GENERATE BRIEFING +
Pakistan is actively pursuing private-sector financing models for the Rohri-Multan section of the Main Line-1 (ML-1) railway upgrade project, valued at over Rs450 billion, following Beijing's decision not to fund the entire ML-1 modernization scheme. Planning Minister Ahsan Iqbal led a high-level review session to evaluate diverse funding structures, including public-private partnerships, foreign capital, commercial bank debt, domestic capital markets, and the Public Sector Development Programme (PSDP). During the meeting, officials reviewed an explicit proposal submitted by the Frontier Works Organisation (FWO) to construct and operate the Rohri-Multan segment via private investment. To ensure absolute commercial rigor, the government will commission an independent feasibility study to thoroughly evaluate the project's technical, financial, and economic viability prior to committing to a final financing framework. This strategic pivot underscores the urgent need to overhaul Pakistan's aging rail network, which has suffered from 399 train derailments and 158 major accidents over the past decade due to severe infrastructure degradation.
Pakistan is exploring private-sector financing for the Rohri-Multan section of the Main Line-1 (ML-1) railway project, after China declined to finance the entire ML-1 upgrade. The section is estimated to cost more than Rs450 billion.
Planning Minister Ahsan Iqbal chaired a meeting to examine financing options for the project, including public-private partnerships, foreign financing, the Public Sector Development Programme (PSDP), local commercial bank financing and domestic capital markets.
The meeting was briefed on a proposal by the Frontier Works Organisation (FWO) to develop the Rohri-Multan section through private investment. The government will also commission an independent feasibility study to assess the project’s technical, financial and economic viability before finalising a financing model.
The development comes as Pakistan seeks to modernise its ageing railway infrastructure. Officials reported that 399 train derailments and 158 accidents occurred over the past decade, with deteriorating railway infrastructure cited as a major concern.
Meanwhile, the Karachi-Rohri section is expected to move ahead with Asian Development Bank financing, with preparatory work targeted during the current fiscal year.
The Rohri-Multan section is therefore emerging as a key test of Pakistan’s ability to attract private capital for major transport infrastructure while reducing reliance on conventional government and foreign-funded financing.
