ISLAMABAD: The Asian Development Bank (ADB) is in advanced talks to finance a $2 billion upgrade of a key railway line in Pakistan after delays in Chinese funding put the project at risk, a private media report said.
The project involves modernising a 500-km stretch of railway from Karachi to Rohri near Sukkur. Faster trains on this line will help move copper ore from the Reko Diq mine to Karachi port.
The upgrade is considered urgent as the Reko Diq copper and gold mine, being developed by Canada’s Barrick Gold, is expected to start production in 2028. The mine is one of the world’s largest untapped copper deposits and Pakistan’s biggest foreign investment in recent years, with an estimated annual output of 200,000 metric tons of copper concentrate.
ADB earlier announced $410 million in financing for the mine itself. Its president is expected to visit Islamabad next week.
Reko Diq project director Tim Cribb said the government and Barrick would work together to secure funds for the railway branch line connecting the mine to Rohri.
A senior government official warned that Pakistan’s old railway system could face a serious crisis without the upgrade. “How will you transport Reko Diq’s output? The exhausted line will come under even more pressure,” he said.
The Railways Ministry and China’s Foreign Ministry did not comment. ADB also declined to confirm the $2 billion package but said it holds regular discussions with Pakistan on railway development.
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“Any ADB support would go through full review under our policies before approval,” it said.
Meanwhile, Federal Minister for Railways Hanif Abbasi announced that 11 trains would be outsourced as part of Pakistan Railways’ broader modernization efforts. He said the move is part of a series of reforms, including digital ticketing and major infrastructure upgrades.
Abbasi told journalists that after years of stagnation, Pakistan Railways is now focusing on modernization. Passengers can already purchase tickets through 16 banks, Easypaisa, and Ufone Bank. To curb fare evasion, ticket checkers will soon use handheld devices, targeting annual losses of Rs1 billion.
He added that the Ministry has shifted to an e-office system and plans to boost freight services to generate revenue for passenger operations.
Key projects include the 480-km track upgrade from Rohri to Karachi, for which assistance is expected from the ADB. Work is also underway with provincial governments in Sindh, Balochistan, and Punjab on further railway improvements.
