By Syed Marwan Shah

ISLAMABAD, August 17, (INP-WealthPK): Foreign investors have shown great interest in Pakistan Railways as a potential investment destination, WealthPK reports.

Since the rupee is becoming stronger against the dollar and the trade deficit is dwindling, the import bill has decreased for July. Analysts expect more positive developments in the near future, saying countries are keen to invest in Pakistan.

They said that owing to Pakistan’s economic outlook and conducive business environment, investors from Oman showed interest in the infrastructure development of railways and power projects, following the United Arab Emirates (UAE).

A delegation of investors from Oman, led by Dr Anvwar Al Balushi of Al Anvwar Asian Investments, has shown interest in spending $2.3 billion on the 1,087-kilometre railway line between Gwadar and Jacobabad. It is a part of Dr Anvwar Baluchi's interest in railway infrastructure development and electricity projects in Pakistan.

According to reports, Pakistan Railways has decided to enter into an agreement with an Omani investment company. Under the agreement, an initial sum of $500 million will be provided for the construction of railway tracks. It is estimated that the project will cost Rs.1.2 trillion.

According to information available with WealthPK, the head of the foreign company also indicated that it could offer loans for a variety of other projects. Additionally, the Omani group is interested in collaborating and improving bilateral relations, strengthening the economic ties between the two countries.

Apart from the investment, a hefty amount of $8.6 billion has also been allocated for the renovation and upgradation of Pakistan Railways under China-Pakistan Economic Corridor (CPEC). It manifests the importance of the railway sector of Pakistan.

WealthPK research indicates that the 1,087-kilometre railway track between Gwadar and Jacobabad will reach the Main Line-1 (ML-1), enhancing freight transportation throughout the country. Pakistan Railways will be able to generate adequate revenue through the project.

Currently, Pakistan's rail network consists of three main lines ML-1, ML-2, and ML-3. Peshawar is the starting point of ML-1, which ends at Karachi through Lahore. The total length of this route is 1,681 kilometres. The ML-2 route connects Attock with Kotri. The total length of this route is 1,243 kilometres. The ML-3 starts from Rohri and ends at Thaftan, covering a distance of 966 kilometres.

The huge investment in the railway sector will help in boosting the national economy and enhancing economic activities in the country.

According to the United Nations Development Programme, future socio-economic growth depends upon improvement in road and rail infrastructures that provide connectivity to support industrial development and make it easier to access schools, hospitals, sanitation and other services.

Credit: Independent News Pakistan-WealthPk