ISLAMABAD — Pakistan is seeking major funding from Saudi Arabia and the United Arab Emirates (UAE) to modernize its aging railway system. The project—Pakistan Eyes Saudi, UAE Investment for $2.5 Billion Rail Upgrade—will begin with the Multan–Lahore section.
According to Railways Minister Hanif Abbasi, around $2.5 billion is required to upgrade this key portion of the track. Much of Pakistan’s railway infrastructure still relies on systems built during the British colonial era, making large-scale modernization essential.
The government is offering Gulf investors a 25-year build-operate-transfer (BOT) model. Under this arrangement, investors will operate the railway section for 25 years before handing it back to the state.
Proposals for investment in the Multan–Lahore and Lahore–Rawalpindi routes have already been shared with potential partners. Minister Abbasi is scheduled to visit Saudi Arabia in October and the UAE later this month to advance talks on financing.
This search for investment is part of Pakistan’s broader plan to revive railway development, including projects under the China–Pakistan Economic Corridor (CPEC). A large-scale CPEC rail upgrade was announced in 2015 but remains stalled due to financing delays.
In parallel, the Asian Development Bank has expressed interest in supporting other projects, such as a proposed $2 billion upgrade of the Karachi-Rohri section.
Analysts note that the Pakistan Eyes Saudi, UAE Investment for $2.5 Billion Rail Upgrade initiative could play a vital role in transforming the country’s transport system. Improved rail connectivity would reduce delays, strengthen trade routes, and ease passenger travel.
However, experts also warn that investor confidence, transparent agreements, and regulatory clarity will be critical to the success of this plan. The outcome of the upcoming discussions with Saudi Arabia and the UAE will determine whether Pakistan can secure the funding needed to move forward.
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