ISLAMABAD: The federal government has proposed an allocation of Rs 27.883 billion, comprising Rs 23.583 billion in local funding and Rs 4.3 billion in foreign assistance, for 33 development projects of the Railways Division in the budget for the 2026-27 fiscal year.
According to official documents available with this correspondent, the government has earmarked Rs 26.233 billion, including Rs 23.233 billion in local funding and Rs 3 billion in foreign assistance, for 31 ongoing development projects of the Railways Division.
In addition, Rs 1.65 billion, comprising Rs 350 million in local funding and Rs 1.3 billion in foreign assistance, has been proposed for two new development projects.
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Among the ongoing schemes, Rs 1.4 billion, including Rs 100 million in local funding and Rs 1.3 billion to be financed by the Asian Development Bank (ADB), has been earmarked for the Preparation and Readiness Support for the ML-1 Upgradation Project. Another Rs 250 million has been proposed for the upgradation of track and allied infrastructure on the 996-kilometre ML-3 Rohri-Sibi-Quetta-Koh-e-Taftan section.
The government has also proposed an allocation of Rs 5 billion for Thar Coal Rail Connectivity with the existing railway network, including last-mile connectivity to Port Qasim. A further Rs 2.5 billion has been earmarked for the procurement/manufacture of 820 high-capacity bogie wagons and 230 passenger coaches.
Additionally, Rs 2.35 billion has been proposed for the recommissioning of five accident-damaged diesel-electric locomotives (2nd Revised), while Rs 2.272 billion has been allocated for the special repair of 100 diesel-electric locomotives to improve their reliability and operational availability.
An amount of Rs 1.008 billion has been proposed for the replacement of roof-mounted air-conditioning units in passenger coaches to improve service delivery. Another Rs 2.056 billion has been allocated for preliminary designs and drawings for the upgradation and rehabilitation of Main Line-1 (ML-1), the establishment of a dry port near Havelian under the China-Pakistan Economic Corridor (CPEC), and the hiring of consultants for design review and drawing vetting.
Similarly, Rs 1 billion has been proposed for immediate track safety works on the Rohri-Kotri section; Rs 854 million for the replacement of old and obsolete signalling equipment on the Lodhran-Multan-Khanewal-Shahdara Bagh Main Line section of Pakistan Railways (2nd Revised); Rs 408 million for the rehabilitation and strengthening of weak bridges across the Pakistan Railways network; and Rs 500 million for land acquisition for rail connectivity with Afghanistan from Kohat (Zero Point) to Kharlachi via Thall and Parachinar, covering a distance of 192 kilometres.
The government has further proposed Rs 3.2 billion, including Rs 200 million in local funding and Rs 3 billion in foreign assistance, for the revised PC-I of the upgradation of Pakistan Railways’ existing Main Line-1 (ML-1) and the establishment of a dry port near Havelian.
Copyright Business Recorder, 2026