Revamping Railways: CPEC Phase-II’s Impact on Pakistan
The second phase of the China-Pakistan Economic Corridor (CPEC) is poised to revolutionize Pakistan's railway infrastructure, addressing the challenges of an outdated system that currently hampers trade efficiency. As Dr. Liaquat Ali Shah, Executive Director of the CPEC Centre of Excellence, explains, Pakistan's strategic location at the junction of significant trade routes linking Central Asia, the Middle East, and China positions it advantageously in global commerce. Yet, the limitations of its rail network restrict this potential.
P.c. China Pakistan Economic Corridor
The flagship initiative of CPEC Phase-II, the Main Line-1 (ML-1) project, encompasses a comprehensive renovation and expansion of the primary railway line stretching from Karachi to Peshawar. With both Pakistan and China committing to the project's swift commencement, the anticipated outcomes are substantial. The ML-1 initiative is designed to reduce travel times by up to 50%, enhance freight capacity, and minimize transportation costs across four key segments: Karachi-Multan, Multan-Lahore, Lahore-Lalamusa, and Lalamusa-Peshawar. These advancements are expected to invigorate economic activity by facilitating domestic trade and strengthening ties with pivotal partners like China.
Despite financial limitations affecting Pakistan Railways, Shah asserts that CPEC will be instrumental in the transformation of the country’s railway infrastructure. While global trends gravitate towards high-speed rail systems, Pakistan Railways currently lags behind. Upgrading railway tracks is vital for the seamless movement of crucial raw materials and finished products across essential industries, including textiles and manufacturing.
In a progressive move, Pakistan Railways has recently forged strategic partnerships with two companies to install optic fiber cables along primary railway routes. This initiative aims to diversify revenue sources, with a significant agreement with a Chinese firm already in place to lay cables along the ML-1 route, beginning from Kemari in Karachi to Peshawar Cantonment. An advance payment of Rs256 million has been secured for this pivotal project.