Pakistan seeks Saudi, Emirati investment to revamp aging railway track

Special Pakistan seeks Saudi, Emirati investment to revamp aging railway track
Pakistan Railways Minister Hanif Abbasi speaks during an interview with Arab News in Islamabad on September 16, 2025. (AN Photo)
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Updated 17 September 2025
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Pakistan seeks Saudi, Emirati investment to revamp aging railway track

Pakistan seeks Saudi, Emirati investment to revamp aging railway track
  • Railways minister says $2.5 billion needed to modernize Multan–Lahore section
  • Pakistan offers 25-year build–operate–transfer model to attract Gulf investors

ISLAMABAD: Pakistan is seeking investment from Saudi Arabia and the United Arab Emirates (UAE) to modernize its aging railway network, with officials estimating that $2.5 billion is needed for an upgrade of the key Multan–Lahore section, Railways Minister Hanif Abbasi told Arab News this week.

The South Asian nation’s railway system, much of it dating back to the 19th-century British colonial era, has long awaited large-scale modernization. Successive governments have looked to foreign partners to finance improvements, with projects promised under the China–Pakistan Economic Corridor (CPEC) still largely stalled.

An overhaul of more than 1,800 kilometers of track has been billed as the centerpiece of a $60 billion CPEC package first announced in 2015, but no financing deal has materialized. Meanwhile, the Asian Development Bank has separately signaled interest in funding rail upgrades, including a $2 billion Karachi–Rohri project, according to recent reports.

“I am going to Saudi Arabia for two days on October 19-20. I am going to the UAE from September 30 to October 2, and I am going to France on October 24. All these things are related to railways,” Abbasi said. “So, we will meet the Saudis there and try to have Saudi investment, because this is the right time for every country, for every investor to invest in Pakistan Railways.”

Asked what proposals Pakistan would extend to Saudi Arabia, Abbasi said:

 “I think that if they come to Multan–Lahore [route], or Lahore–Rawalpindi, it is an offer from us.”

He said Pakistan would present a build–operate–transfer model to potential Gulf investors.

“We have a model: built–operate transfer. We will give them that place for 25 years. We will give them that section. They will come and talk to us.”

Abbasi said similar proposals had been offered to the UAE.

“We have offered them to invest in Multan and Lahore. We need around $2.5 billion for Multan and Lahore,” he said.

The minister also confirmed meetings with officials of Mashreq Bank, a Dubai-based institution that recently launched Shariah-compliant digital services in Pakistan. While Mashreq’s immediate focus has been on digital banking, Abbasi said discussions had included possible rail sector opportunities.


Pakistan deputy PM says will soon table 27th constitutional amendment in parliament

Pakistan deputy PM says will soon table 27th constitutional amendment in parliament
Updated 04 November 2025
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Pakistan deputy PM says will soon table 27th constitutional amendment in parliament

Pakistan deputy PM says will soon table 27th constitutional amendment in parliament
  • Key proposals include creating constitutional courts, removing protection for provinces’ share in federal resources, and returning education and population to center
  • Analysts say the Pakistan Peoples Party, a key coalition partner in the federal government that has voiced its opposition to the 27th amendment, has little choice but to back it

KARACHI: Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar said on Tuesday that the government will soon table the much-discussed 27th constitutional amendment in parliament, amid concerns that it could undermine provincial autonomy.

Constitutional amendments in Pakistan require a two-third majority in both houses of parliament and have historically been used to redefine the balance of power between the legislature, judiciary and provinces. The proposed 27th amendment follows the 26th amendment passed in October 2024, which empowered parliament to appoint the Supreme Court chief justice for a fixed term and created a panel of senior judges to hear constitutional cases, a move critics said weakened judicial independence.

Pakistan’s constitution, adopted in 1973, has been amended more than two dozen times, often reflecting the country’s shifting balance among civilian governments, the military and the judiciary. Provisions such as the National Finance

Commission (NFC) award, which governs how federal revenue is shared among provinces, are especially sensitive because they underpin Pakistan’s federal structure and provincial autonomy.

In a post on X on Monday, Pakistan Peoples Party (PPP) Chairman Bilawal Bhutto-Zardari, a major coalition partner, said Prime Minister Shehbaz Sharif’s ruling Pakistan Muslim League-Nawaz (PML-N) had approached his party, seeking support in passing the amendment. He said the proposals included creating constitutional courts, restoring executive magistrates, amending Article 243, which defines the command and control of the armed forces, removing protection for provinces’ share in the NFC award and returning education and population planning to the federation.

“Of course, the government is bringing it and will bring it... the 27th amendment will arrive... We will try that it be tabled in accordance with principles, laws and the Constitution,” Dar said in the Senate, the upper house of parliament, adding that the draft amendment would undergo robust debate.

“The government does not have reservations on anything. It is not the case that the amendment is tabled and there is voting on it in a haphazard, ad hoc manner; this will not happen.”

The PPP, a key coalition partner in the federal government that has long claimed credit for spearheading the 18th amendment in 2010, considers it one of its signature democratic achievements. That amendment had significantly strengthened provincial autonomy, devolved several ministries and given provinces a larger share in national resources.

Senator Raza Rabbani, a senior PPP member and one of the architects of the 18th amendment, warned that any attempt to revisit the provincial autonomy will “cast deep shadows over the federation.”

He said the proposed amendment amounted to “a rollback of the 18th amendment” and could reignite divisive nationalist sentiments, arguing that reviving devolved ministries would place an unnecessary financial burden on the federal government that is already struggling to manage its fiscal affairs.

“If Islamabad cannot manage its finances, then let the provinces collect taxes and contribute to federal expenditures through the Council of Common Interests,” he said, cautioning that undoing fiscal devolution would be “counter to the principle of participatory federalism.”

PPP UNLIKELY TO ‘RESIST’ AMENDMENT

Political observers remain skeptical about the PPP’s ability to oppose the amendment.

Lahore-based analyst Salman Ghani said that while the party may protest publicly, it is unlikely to “resist” the amendment in parliament.

“This is happening with 100 percent consent,” he said, adding the PPP was not in a position to say “no” to the amendment which gives more powers to the center.

“During the 18th amendment, the PPP was strong and confident. Today, the balance of power is different. The center needs more resources, and the PPP is in no position to challenge it.”

Ghani believed that the amendment would pass easily in the National Assembly, the lower house of parliament, wherein the ruling PML-N already has the required numbers. “But in the Senate, the government, will need support from the Jamiat Ulema-e-Islam–Fazl,” he said. “In the end, the PPP will accept the bitter pill because they are part of this system and cannot afford confrontation.”

Fazil Jamili, a Karachi-based analyst, agreed with Ghani, saying that political parties were not in a position to “resist.”

Calling the proposal “detrimental to democracy,” Jamili said the 27th amendment, as outlined by Bhutto-Zardari, would “certainly roll back the 18th amendment” and erode provincial autonomy and public trust.

“Around the world, federal governments are devolving powers. We are doing the opposite,” he said. “That’s not healthy for democracy in the long run.”