The federal cabinet of Pakistan has approved initiating negotiations with China on the Financial Commitment Agreement to upgrade the Mainline-1 (ML-1) railway project, a key component of the China-Pakistan Economic Corridor (CPEC). Prime Minister Shehbaz Sharif, who chaired the cabinet meeting in Islamabad, emphasized that the final agreement on this state-of-the-art project should be brought back to the cabinet for approval.
The ML-1 project, which spans 1,726 kilometers, is expected to significantly enhance Pakistan’s logistics capabilities. Once completed, the upgraded railway line will allow trains to operate at speeds of up to 120 km/h, with the capacity to handle up to 120 trains per day. This will substantially increase both passenger and freight capacities, meeting the country’s transportation needs for the next 25 to 30 years.
The Chinese government has shown a commitment to providing financing support for the project, including loans on favorable terms. However, the project’s current planning does not include the cost of rolling stock and security infrastructure, which is being addressed separately with an additional budget of around Rs36 billion.
In addition to the ML-1 project, the cabinet discussed ongoing efforts to strengthen law enforcement in Balochistan, following Prime Minister Shehbaz’s recent visit to Quetta. The prime minister highlighted the importance of eliminating terrorism to ensure the country’s progress and prosperity. He reiterated the government’s commitment to supporting law enforcement agencies and implementing development initiatives in the region.
The federal government is also focusing on youth development in Balochistan, with initiatives like increased quotas in educational programs and significant investments in solarizing agricultural tube wells. The prime minister praised the provincial government for its efforts to integrate Baloch youth into the national mainstream and assured continued federal support for these initiatives.
Prime Minister Shehbaz also noted that Moody’s had recently upgraded Pakistan’s economic rating, reflecting the country’s improving economic situation. He emphasized the need for continued efforts to further strengthen the economy, announcing that the federal government would soon introduce a five-year Home Grown Economic Revival Plan aimed at boosting various sectors, including exports, agriculture, and youth development.
The cabinet concluded by approving decisions made by the Economic Coordination Committee on August 29, 2024.
