Syed Marwan Shah

An Oman-based firm has shown interest in initiating a $2.3 billion project to connect Gwadar port city to the main line track of Pakistan Railways, WealthPK reports.

The investment by the Omani firm, Anvwar Asian Investments, in the Pakistan Railways will connect the Gwadar port to Jacobabad, covering a distance of 1,087 kilometres. As a result of the Gwadar-Jacobabad railway line, the port city will be connected to the main railway network of Pakistan, which will prove highly beneficial for the country as well as the entire region.

Pakistan, as a country of more than 220 million people and a major Muslim nuclear power, has great potential for attracting foreign investment due to its favourable location in South Asia in terms of political, economic and strategic aspects. The regional connectivity through its economic corridors can help Pakistan to develop into a regional economic powerhouse.

Earlier this month, the representatives of Anvwar Asian Investments met with officials at Pakistan’s Board of Investment, showing interest in building a railway line to connect Gwadar to Jacobabad.

According to the Board of Investment (BoI), the Omani side is ready to provide an immediate tranche of $500 million as initial financing for the $2.3 billion investment.

WealthPK research shows that investment in the Pakistan Railways and implementation of related soft measures to enhance trade will make railway an attractive means of transportation.

Enhancing railway connectivity, promoting trade and investment across borders and improving access to external markets will help to improve the economic prospects of the subregion as a whole.

According to a recent report of Asian Development Bank (ADB), Pakistan’s sustainable growth can be supported by the development of economic corridors. It said that structural reforms including rationalising regulations and taxes for businesses as well as improving trade facilitation and logistics are essential for the country’s economic growth.

Currently, Gwadar has not been connected to any major city of the country through a railway line. There is also a bit uncertainty about the execution of the schemes under China-Pakistan Economic Corridor (CPEC) to upgrade other railway lines.

A proposed project under CPEC is meant to improve the railway tracks between Peshawar and Karachi, known as ML-1. However, Islamabad and Beijing have not agreed on the cost of the project so far.

Pakistan must negotiate with its Chinese partners in refurbishing ML-1 as it is considered an economic backbone of the country. It rolls through around 75 percent of the country’s population and over 80 percent of industries. It is highly important for the economic growth of the country and developing it into a regional economic hub.

The completion of the railway line between Gwadar and Jacobabad will help Pakistan to become a hub of economic activities at the regional level. The Central Asian Republics, Afghanistan and Turkey will have more opportunities to utilise Gwadar seaport for their shipments around the globe, according to the research conducted by WealthPK.

Credit: Independent News Pakistan-WealthPak