Faced with severe financial constraints, Pakistan has secured a massive $390 million (over Rs112 billion) bridge loan from the Reko Diq Mining Company (RDMC) to fund the critical overhaul of Pakistan Railways’ 996-kilometre Main Line-3 (ML-3). The vital rail section, stretching from Rohri through Sibi and Quetta to Koh-i-Taftan, is currently in such poor condition that trains crawl at just 10 to 15 kilometres per hour.
The $892 million upgrade is primarily designed to facilitate heavy transportation for the multi-billion-dollar Reko Diq copper and gold project in Balochistan, where Canada’s Barrick Gold holds a 50% stake. The road network cannot handle the massive freight volume expected once mining begins, making the rail line an economic necessity. The federal government must repay the lump-sum (bullet) bridge loan within two years, by June 2028, a timeline the Planning Commission warns could introduce serious fiscal pressure and repayment risks.
Beyond domestic mineral logistics, the upgraded corridor is strategically positioned to strengthen Pakistan’s regional connectivity with Iran and Turkiye, dramatically opening up trade routes to Central Asia and Europe. While Phase-I (2026–2030) will lock down track renewal, embankment rehab, and 11 new stations, the project has drawn intense scrutiny from the Planning Commission due to its eye-watering security budget. Security arrangements during construction alone are projected to cost $162 million (Rs46.38 billion)—consuming nearly 17% of the total project budget—sparking critical questions from planners regarding long-term corridor safety after completion.
