Pakistan plans to use a $390 million bridge loan from the Reko Diq Mining Company (RDMC) to upgrade its Main Line-3 (ML-3) railway. The project will rebuild the 996-kilometre track from Rohri in Sindh to Koh-i-Taftan near the Iranian border, passing through Sibi and Quetta.
The total cost of the project is Rs. 278.62 billion (about $1 billion). The government wants to repay the $390 million loan in one payment by June 2028. This financing will help avoid putting the full burden on the Public Sector Development Programme (PSDP). The Prime Minister and Economic Coordination Committee have already approved the plan.
Currently, trains on this route travel very slowly, at 10-15 km/h. Passenger services have almost stopped, and freight traffic is very low. After upgrade, train speed will increase to 100 km per hour. Line capacity will rise from two train pairs to 26 pairs daily. This will support the massive needs of the Reko Diq copper-gold mine, which is expected to require eight train sets every month. It will also create a mineral transport corridor to Gwadar Port.
The Planning Commission has raised some concerns. It worries about the one-time repayment pressure and a large Rs. 46 billion security budget. The project has a seven-year timeline with only 9% funding allocated for the first year.
Once completed, the upgraded ML-3 will boost trade with Iran, Central Asia, and Europe while helping Pakistan export minerals more efficiently.