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Saturday, February 4, 2023

Omani investors willing to invest in Pakistan’s Railway projects

Pakistan Railways decided to sign an agreement with Omani investment company as per which initial funding of $500 million for the construction of railway tracks will be provided

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As the national economy is showing signs of stability with strengthening of Rupee against the US dollar, improvement in trade deficit, decrease in import bill for the month of July and positive expectations by the analysts, market sentiments have improved. Resultantly, countries are showing their keen interest in investment in Pakistan. Followed by United Arab Emirates (UAE), investors from Oman have shown their willingness to invest in Pakistan’s Railway Infrastructure Development and power projects.

Read more: UAE to invest $1 billion: bringing colors to the fading economy

A delegation of investors from Oman led by Dr. Anwar Al Balushi of Al Anvwar Asian Investments met with Minister for Board of Investment Chaudhary Salik Hussain in Islamabad and disclosed the foreign group’s intention to invest in the railway project.

The Omani group is interested in spending $2.3 billion on the 1,087 Km railway line between Gwadar and Jacobabad as part of Dr. Anwar Baluchi’s interest in Railway Infrastructure Development projects and electricity projects in Pakistan, as informed during the meeting.

Earlier this year, Anvwar Asia Investment Company, which is renowned as a top global facilitator in project financing, also signed a memorandum of understanding with Pakistan.

According to media reports, Pakistan Railways decided to sign an agreement with Omani investment company as per which initial funding of $500 million for the construction of railway tracks will be provided. Estimated cost of the project is Rs.1.2 trillion.

Moreover, as per the officials the foreign company’s head also said that they can offer financing/loans for undertaking other projects too. The Omani group was also interested to collaborate and improve bilateral relations, strengthening economic bonds between the two nations.

Chaudhary Salik Hussain assured full assistance and participation to Omani investors in order to expedite and accelerate the process of their investment in Pakistan.

The China-Pakistan Economic Corridor (CPEC) aims to connect Gwadar port to China’s Xinjiang province by highways, railways, and oil and gas pipelines.

The country’s current railway infrastructure is inadequate to handle the tremendous load that is expected to result from the completion of CPEC projects, according to the feasibility report.

The current network consists of ML-1, which extends from Karachi to Peshawar; ML-2, which runs from Kotri to Attock; and ML-3, which runs from Rohri to Taftan.

Dr. Balushi also met with Najm Saeed, the CEO of Railcop (which prepared a feasibility report of the project), in Islamabad to discuss various opportunities for investing in additional infrastructure projects. The company has shown interest in other railway projects also.

In addition, the Railcop CEO drew the attention of the Omani investor to Balochistan’s rail network, claiming that the outmoded system restricted trade between Pakistan and neighboring nations.