Islamabad: Pakistan Railways’ Main Line-3 (ML-3) upgrade project will be financed through a USD 390 million bridge loan from Reko Diq Mining Company (RDMC), providing interim funding for the rehabilitation of the 996-kilometre Rohri–Sibi–Quetta–Taftan railway corridor.
The financing arrangement has already received approval from the prime minister and the Economic Coordination Committee (ECC), while the Central Development Working Party (CDWP) has cleared the project for consideration by the Executive Committee of the National Economic Council (ECNEC), subject to the resolution of several concerns raised by the Planning Commission.
Estimated to cost PKR 278.62 billion, the ML-3 project is primarily intended to support freight transportation for the Reko Diq copper and gold mine. According to Pakistan Railways, the project will ultimately be financed through the Public Sector Development Programme (PSDP), with the RDMC bridge loan serving as temporary funding. The federal government is required to repay the loan in a lump sum by June 2028.
The project includes track renewal, rehabilitation of embankments and bridges, replacement of turnouts, and the construction of 11 new railway stations between Spezand and Taftan. Work will be implemented in two phases, with the first phase running from 2026 to 2030 and the second from 2031 to 2033.
The Planning Commission, however, has expressed concerns over the financing structure, warning that the bullet repayment could create fiscal pressure for the government. It also questioned the inclusion of PKR 46.38 billion in security costs—around 17% of the total project cost—and sought clarity on long-term security arrangements for the railway corridor after project completion.
Officials say the rehabilitation has become critical ahead of increased mining activity at Reko Diq. The existing ML-3 infrastructure is in poor condition, with trains operating at speeds of just 10 to 15 kilometres per hour. Once upgraded, the line will support train speeds of up to 100 kilometres per hour, significantly increasing freight capacity and improving connectivity with Iran and regional markets.
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