ISLAMABAD: Pakistan’s Planning Commission scrutinized the financing and security costs of the 996-kilometre Main Line-3 railway project. The 280 billion rupee initiative will upgrade the track network connecting Rohri, Sibi, Quetta, and Taftan to support the multi-billion-dollar Reko Diq copper and gold mining project.
Due to national financial constraints, Reko Diq Mining Company will provide a 390 million dollar bridge loan to kickstart construction. The federal government must repay this loan in a single lump-sum payment by June 2028. Planning officials warned that this tight two-year repayment window could create severe fiscal pressure and significant foreign exchange risks for the state.
The commission also questioned the massive 46.38 billion rupee security budget, which constitutes nearly 17 percent of the total project cost. Officials noted that funding security forces does not qualify as a traditional development activity. They also expressed concern over the lack of a long-term plan to protect the corridor from regional security threats after workers complete construction.
The current railway infrastructure remains in terrible condition, forcing trains to travel at restricted speeds of just 10 to 15 kilometers per hour. Passenger services have virtually stopped, and the route handles only two freight trains per month. The upgrade will increase line capacity to 26 trains daily and boost operating speeds to 100 kilometers per hour.
This vital overhaul will allow efficient mineral transportation from Nokundi to Karachi and Gwadar ports for international export. The upgraded line will also restore crucial regional trade links connecting Pakistan with Iran and Turkiye. Despite the strategic importance of the project, the government allocated only 250 million rupees for the initiative in the current public sector development program.
