Pakistan Railways’ proposed upgrade of the 996-kilometre Main Line-3 (ML-3) railway connecting Rohri to Koh-i-Taftan via Sibi and Quetta has come under scrutiny after the Planning Commission raised concerns over its financing model, security costs, and long-term sustainability.
The project, estimated to cost Rs. 278.62 billion, is intended to modernize one of the country’s most strategically important railway corridors. Instead of relying on the Public Sector Development Programme (PSDP), the government plans to finance a significant portion of the project through a $390 million bridge loan provided by the Reko Diq Mining Company (RDMC).
Under the proposed arrangement, the federal government will repay the loan in a single payment by June 2028. However, the Planning Commission has warned that the lump-sum repayment structure could place considerable pressure on the national budget and create financial risks.
During its review ahead of the Central Development Working Party (CDWP) meeting chaired by Planning Minister Ahsan Iqbal, the Commission questioned whether the government had adequately assessed the fiscal implications of the financing plan.
Another major concern highlighted in the review is the project’s security budget. Approximately Rs. 46.38 billion, nearly 17 percent of the total project cost, has been allocated for protecting workers, construction activities, and railway infrastructure during implementation.
The Planning Commission noted that security expenditures do not typically fall under development spending and questioned whether the Balochistan government had been consulted regarding the deployment of local law enforcement agencies. It also sought clarification on how the railway corridor would be secured after construction is completed, particularly given the region’s security challenges.
The seven-year project is expected to begin with an initial allocation of Rs. 25.87 billion, representing only about 9 percent of the total estimated cost during its first year.
Currently, the ML-3 railway line is in poor condition, with trains operating at speeds of only 10 to 15 kilometres per hour. Passenger services between Quetta and Taftan have declined significantly, with journeys taking nearly 48 hours, compared to around 15 hours by road. Freight traffic also remains limited, despite the anticipated transportation needs of the Reko Diq mining project.
Officials estimate that once upgraded, the railway’s capacity could increase from two train pairs per day to 26, while train speeds could reach 100 kilometres per hour. The improved corridor is also expected to facilitate mineral exports from Nokundi to Gwadar Port, significantly reducing transportation time and strengthening trade links with Iran, Türkiye, Central Asia, and European markets.
Project implementation has already begun with the appointment of a joint venture led by M/s Zeeruk International as the engineering consultant. RDMC has also agreed to assist in procuring essential railway machinery. The Prime Minister has approved the bridge financing arrangement, while the Economic Coordination Committee (ECC) has endorsed the related agreements.
According to the implementation plan, Phase I (2026–2030) will require approximately $585 million for critical infrastructure development, followed by Phase II (2031–2033) with an estimated cost of $145 million.
Despite the project’s strategic importance for Pakistan’s transportation and mining sectors, the Planning Commission has emphasized the need for greater clarity on financial sustainability, security responsibilities, and future funding arrangements before the project moves forward.
