Islamabad: The Senate Standing Committee on Planning, Development & Reforms was informed on Thursday that efforts are underway to secure a USD 9 billion Chinese loan for Main Railway Line (ML-1), according to a news source. This loan will be taken at around two percent interest, with the condition that no unapproved project will be included in the Public Sector Development Programme (PSDP).
Speaking at a meeting of the committee, Minister for Planning, Development & Reforms Asad Umar said he had issued directives that no unapproved project should be included in the next Public Sector Development Programme. Additionally, no new projects will be included in the PSDP in future till land is purchased for them.
He further said it will also be settled in advance whether a project would be funded by the federal government or the province concerned.
Discussing the issues relating to design and upgradation of ML-1, a senior officer of the Ministry of Railways told the committee that 80 % design work of the 1,680-km project had been completed. “The project is going to cost more than USD 9 billion and the government is trying to secure loan for it at around 2% interest.
If the loan can be obtained, he added, it would be the lowest interest rate among all the projects on the China-Pakistan Economic Corridor portfolio.
The meeting was also told the project was anticipated to generate 20,000 direct and 150,000 indirect jobs and would be completed in three phases. Under Phase I, four sections will be completed in three to four years.
The project will also raise the line speed, capacity and freight volume. The speed of passenger trains is expected to rise from the current 65 km per hour to somewhere between 110-160 km per hour. Similarly, the speed of freight trains is also expected to double.
