ML-I phase one to cost $2.1b

The government has put the first 480-kilometre stretch of the Karachi-Rohri Mainline-I railway project at $2.1 billion, The Express Tribune reported, citing a statement to the Senate. Railways Minister Hanif Abbasi said the final figure will follow completion of the detailed engineering design, which is being reviewed. Work could begin in the current fiscal year, subject to approvals, financing and procurement, and is expected to take two and a half years.

Funding remains a hurdle for the wider project. Pakistan was unable to obtain $8 billion from China toward the overall $10 billion scheme, and the government is considering local bank financing backed by railway land for the Multan-Rohri phase. The Frontier Works Organisation has estimated that section at Rs470 billion, including about Rs365 billion in borrowing, but the ministries have not settled responsibility for repayments and guarantees. The Senate was also told that 67% of railway track is beyond its useful life and 300 accidents occurred over three years.