Railway upgrade is now a government priority, Planning Minister Ahsan Iqbal said, as Pakistan looks for financing to modernize the ML-1 railway line.

Chairing a meeting on financing the Rohri-Multan section of ML-1, Iqbal called for a clear and workable plan to fund the project.

The Rohri-Multan section is estimated to cost more than Rs450 billion. The government is considering several financing options, including development funds, foreign financing, public-private partnerships, local bank loans and domestic capital markets.

The meeting was told that Pakistan recorded 399 train derailments and 158 other accidents over the past 10 years due to the deteriorating condition of the railway infrastructure.

The Frontier Works Organization (FWO) has also proposed developing the Rohri-Multan section through private investment.

Iqbal directed authorities to conduct an independent feasibility study to assess the section’s technical, financial and economic viability before finalizing a financing model.

He also said work on the Karachi-Rohri section, backed by Asian Development Bank financing, will begin during the current fiscal year and directed authorities to complete preparations on time.

The Planning Minister also ordered the Ministry of Railways to assess future requirements for locomotives, freight wagons and passenger coaches and include them in a broader modernization plan.

Iqbal said ML-1 is more than a railway project, as its completion would improve transport, trade, industry and movement of goods and passengers across Pakistan.

He also noted that cuts in the development budget are affecting major national projects and called for better use of available funds and alternative financing options.