Formerly the first choice for both passenger and freight transportation, Pakistan’s railway has been steadily declining in recent years. The United Arab Emirates (UAE) and Russia have partnered with Pakistan to accomplish the government’s goal of attracting investment to revitalize the country’s failing railway industry. train news
Pakistan will receive investments from the UAE and Russia.
– There is not much of a relationship between Pakistan and Russia.
– Russia has indicated that it wants to make investments in Pakistan’s railway industry.train news
Islamabad: To improve its dire economic circumstances, Pakistan’s beleaguered railway industry is expected to receive investments totaling up to $1 billion. The United Arab Emirates, Russia, and India are close allies and will be funding this venture. Russia and the United Arab Emirates have expressed interest in Pakistani railways by deciding to invest in their modernization. train news
For this reason, Pakistan and these two nations are currently having discussions. train news The tanker mafia’s dominance has caused significant challenges for Pakistan’s railway sector, which was once a preferred option for both freight and passenger transportation, resulting in unfavorable conditions.
As per the report published in Express Tribune, the government of Pakistan is presently undertaking upgrade projects, and Russia and the United Arab Emirates are keen on making investments in this field. Both nations have been working on investment plans. Additionally, China is actively looking for ways to invest in the railway industry. train news
Russia has committed to spending between 550 million and 660 million dollars to expand the railway line between Quetta and Taftan in the province of Balochistan. train news On December 8, 2023, during the Federal Minister and Railway Secretary’s trip to Russia, this commitment was made. In this respect, both sides are currently working to sign the G2G framework agreement.
The successful oil import last year—a calculated move to fortify economic ties—demonstrates the improvement in Pakistan-Russia relations. During the train news PTI government, Russia showed interest in funding a steel mill in Pakistan that was experiencing financial difficulties.
Building on previous investments, such as a port terminal in Karachi, the UAE is considering investing $350–400 million to construct a warehouse in Pakistan. Furthermore, Dubai is looking into making a $400 million investment in the railway industry.
With this investment, Pakistan hopes to modernize its railway infrastructure. Plans call for lump-sum payments for cable TV providers using railway bridges as well as the rationalization of train news crossing fees. In order to efficiently transport coal to power plants, the government’s long-term plan calls for the Thar Railway Connectivity Project to be implemented.
Although Pakistan has been receiving investments from the UAE, both nations have inked a deal for a port terminal in Karachi that will draw foreign investment. At present, there is a possibility of investing $400 million in the railway sector of Dubai.
A multimodal logistics hub and dedicated freight corridor in Pippri have already been approved for investment by the UAE. The project was moving forward using a government-to-government (G2G) framework, and Pakistan was provided with a draft outline of a memorandum.
In addition, the UAE and the Pakistani government are collaborating on a mega-refinery project as part of their strategic investment in Pakistan. Additionally, Putin discussed further regional engagements with Pakistan’s acting prime minister at the third BRI Forum in China.