Pakistan Seeks $2 Billion Investment from Gulf Countries for Chagai-Gwadar Railway Track

The government of Pakistan has requested $2 billion in investment from Gulf countries to construct a railway track connecting Chagai to Gwadar, sources told ProPakistani. The track is essential for transporting minerals extracted from the Reko Diq mines to Gwadar for export, according to officials. Sources added that a completely new railway line will be built for this purpose. The project has already undergone a feasibility study conducted by the Ministry of Finance, Ministry of Railways, and the Special Investment Facilitation Council (SIFC). Sources further disclosed that Gulf countries have requested sovereign guarantees for their investments in the railway project. However, the Ministry of Finance has expressed reservations, stating that Pakistan, while under the IMF loan program, cannot provide guarantees for every investment. During a briefing to the International Monetary Fund (IMF) delegation, SIFC officials highlighted the council’s role in providing a unified platform to facilitate investments and act as a bridge between investors and the government. However, the IMF has reportedly demanded that Pakistan refrain from granting tax exemptions to international investments under the SIFC framework. Negotiations between the Ministry of Finance and the Ministry of Law are ongoing to amend the Sovereign Wealth Fund framework, which could address some of these concerns. The IMF delegation was also briefed on the governance, structure, and investment plans of the SIFC.