Islamabad, Mar 12, 2025: Pakistan has approached Gulf nations for a $2 billion investment to develop a railway line linking Chagai to Gwadar, sources revealed.
This railway track is crucial for efficiently transporting minerals from the Reko Diq mines to Gwadar for export, officials stated.
According to sources, an entirely new railway network will be established for this initiative.
The feasibility study for the project has already been completed with the collaboration of the Ministry of Finance, Ministry of Railways, and the Special Investment Facilitation Council (SIFC).
Additionally, sources indicated that Gulf investors have sought sovereign guarantees to secure their investment in the railway infrastructure.
However, the Ministry of Finance has raised concerns, clarifying that Pakistan, currently under the IMF loan program, is unable to extend investment guarantees for all projects.
Read More:
Central Directorate of National Savings (CDNS) Achieves Rs. 20 Billion Target in Islamic Finance
During a briefing with the International Monetary Fund (IMF) delegation, SIFC representatives outlined the council’s efforts to streamline investment opportunities and act as a mediator between foreign investors and the government.
Reports suggest that the IMF has insisted Pakistan should not provide tax exemptions for international investments within the SIFC framework.
Ongoing discussions between the Ministry of Finance and the Ministry of Law aim to revise the Sovereign Wealth Fund framework, which could potentially resolve these issues.
The IMF delegation was also given insights into the governance structure, operational strategies, and investment policies of the SIFC, highlighting Pakistan’s commitment to attracting foreign direct investment while maintaining financial stability.
