LAHORE
The government’s move to explore fresh financing options for the long-delayed Main Line-1 (ML-1) railway project has been welcomed by the business community, which termed the initiative a significant step towards modernising Pakistan’s transport infrastructure, reducing logistics costs and strengthening trade and industrial activity.
The All Pakistan Business Forum (APBF) said the decision to explore multiple financing avenues for the 460-kilometre Rohri-Multan section of ML-1 could help move the strategically important project forward after years of delays. The government is considering financing through the Public Sector Development Programme, foreign funding, public-private partnerships, local commercial banks and domestic capital markets.
APBF President Syed Maaz Mahmood and Chairman Ibrahim Qureshi said the modernisation of ML-1 should be treated as a national economic priority because an efficient railway system was essential for lowering the cost of transporting goods and connecting industrial centres with ports and domestic markets.
The APBF leadership appreciated the government’s decision to look beyond a single source of financing and develop a comprehensive funding strategy. They said the involvement of domestic financial institutions and private-sector investors, alongside foreign financing and public resources, could provide greater flexibility and reduce the pressure on the development budget.
Maaz Mahmood said an upgraded ML-1 could significantly improve Pakistan’s trade and logistics infrastructure by providing a faster and more reliable transportation system for businesses. Lower freight costs would particularly benefit manufacturers, exporters, agricultural producers and small and medium-sized enterprises.
The APBF president said better connectivity would also support regional trade and strengthen Pakistan’s position as a potential transit and logistics hub linking Central Asia, China and other regional markets. Recent improvements in cross-border trade connectivity had already demonstrated the importance of reliable transport corridors for expanding exports and reducing delivery times.
Chairman Ibrahim Qureshi said the private sector could play an important role in financing and operating commercially viable components of major infrastructure projects. He said public-private partnerships and domestic capital-market financing should therefore be examined seriously, provided appropriate safeguards were established.
