Islamabad: The government of Pakistan has approached Gulf countries for a $2 billion investment to construct a railway track connecting Chagai to Gwadar, sources told ProPakistani. The proposed railway line is crucial for transporting minerals extracted from the Reko Diq mines to Gwadar for export, officials said.
According to sources, a completely new railway track will be built for this purpose. The Ministry of Finance, Ministry of Railways, and the Special Investment Facilitation Council (SIFC) have already completed a feasibility study for the project.
However, Gulf nations have reportedly sought sovereign guarantees for their investment in the railway project. The Ministry of Finance has raised concerns over this request, stating that Pakistan, under the IMF loan program, cannot provide guarantees for every foreign investment.
During a briefing to the International Monetary Fund (IMF) delegation, SIFC officials highlighted the council’s role in facilitating investments and acting as a bridge between investors and the government. The IMF has reportedly insisted that Pakistan avoid granting tax exemptions to international investments made under the SIFC framework.
To address concerns, the Ministry of Finance and Ministry of Law are negotiating amendments to the Sovereign Wealth Fund framework, which may provide an alternative mechanism for securing investment.
Meanwhile, the IMF delegation was also briefed on the governance, structure, and investment plans of the SIFC, as Pakistan seeks to attract large-scale foreign investment to boost infrastructure and economic development.
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