Proposed Plan for Railway-Based Regional Connectivity within the CPEC Framework

Pakistan's visionary plan to interlink its railway system with China and Afghanistan, ultimately converging at the Gwadar deep sea port within the China Pakistan Economic Corridor (CPEC), has earned strategic significance on both national and regional fronts.

This comprehensive initiative promises to revolutionize trade routes by facilitating efficient transportation of goods from China and Central Asian nations to Gwadar, consequently stimulating economic growth and tourism within Pakistan.

The CPEC project includes a pivotal phase: the upgrading of the existing Main Line 1 (ML-1) railway track from Peshawar to Karachi. Subsequently, new railway lines will be laid across the nation, further enhancing trade activities under the CPEC banner.

A noteworthy feature of this plan is the construction of a 1,059-kilometer railway line, connecting Havelian in Pakistan's Khyber Pakhtunkhwa province to Kashgar in China's Xinjiang province, establishing a vital rail link between the two nations.

Additionally, a 1,328-kilometer railway route from Jacobabad and Quetta via Basima to Gwadar, with an estimated cost of $4.5 billion, is in the pipeline to solidify Gwadar's connection with the rest of Pakistan and China. Pakistan Railways also envisions laying a new 560-kilometer railway track from Quetta to Kotla Jam via Zhob and D.I. Khan.

Notably, the plan extends its reach to Afghanistan, with a new railway line from Peshawar to Torkham. In a recent development, sources from the Ministry of Planning and Development revealed that the railway network will be further extended to Kabul and Mazar Sharif, fostering connectivity between Central Asian states and Gwadar through railways.

These ambitious railway projects are part of the long-term CPEC plan, aiming for completion by 2030.

To ensure the successful realization of the ML-1 project, it has been divided into three packages. The Ministry of Railways has already submitted the first package, valued at $2.389 billion, to the Planning Commission. Prime Minister Imran Khan has urged swift action on the project, and the first package is expected to undergo evaluation by the Central Development Working Party (CDWP) this month, followed by consideration by the Executive Committee of the National Economic Council (ECNEC) for final approval.

Once approved by ECNEC, the project will be presented at the 9th annual meeting of the Joint Coordination Committee on CPEC between Pakistan and China in October, where financing details will be finalized.

The scope of work encompasses the upgrade and doubling of ML-1 from Karachi to Peshawar and Taxila to Havelian (1,872 kilometers). This includes the provision of modern signaling and telecommunication systems, conversion of level crossings into underpasses or flyovers, and fencing of tracks.

Upon completion of ML-1, Pakistan Railways anticipates significant benefits, such as an increase in speed from 65-105 km/hour to 120-160 km/hour, an expansion of line capacity from 34 to 171 trains daily in each direction, a surge in freight volumes from 6 to 35 million tons annually by 2025, an increase in passenger trains (ex-Karachi) from 20 to 40 daily in each direction, and an enhancement of the railway's share of freight transport volume from less than 4% to 20%.

Furthermore, travel time from Karachi to Lahore will be reduced from 18 hours to a mere 10 hours, and the journey from Islamabad to Lahore will shrink from four and a half hours to just two and a half hours.

Financing for the project will be secured through a loan from the government of China, with an 85% share from Chinese loans and 15% from the government of Pakistan's investment. The loan terms are favorable, with an interest rate of approximately 2% and a grace period of 8-10 years. According to the Business Plan, the loan will be repaid over 20 years, using railway earnings once the project is completed.

Furthermore, official documents indicate that this project will generate around 20,000 direct jobs for local residents and over 150,000 indirect jobs across the country, marking a significant contribution to the economy.