ISLAMABAD: The National Railways Authority has prepared its report on realigning the main line (ML1) track and sent it to the Chinese Ministry of Transportation for a final decision, Railways Minister Saad Rafique told a parliamentary committee on Thursday.

“Funding for the project has not been ensured by the Chinese government yet. The government is making gradual advances on the project, and work is less likely to begin before the end of 2018,” Mr Rafique told a meeting of the Senate Standing Committee on Railways.

The committee took up several issues during Thursday’s meeting, including the Karachi Circular Rail, outstanding dues on Railways land transferred to the Pakistan Telecommunication Company (PTCL) in Chaman, illegal occupation of Railways lands and increasing security for the China Pakistan Economic Corridor (CPEC).

Mr Rafique told senators the main line track from Karachi to Torkham would pave the way for fast trains in the country.

Funding for project not yet ensured by Chinese govt, railways minister tells Senate committee

“The track is also being realigned with the Karachi Circular Rail, for which land acquisition and fencing of the track has commenced,” he added.

While discussing outstanding dues on Railways land transferred to the PTCL, the Ministry of Finance said it could pay the cost of the land, which the government has already committed.

However, it cannot pay the Ministry of Railways occupancy charges and interest.

The committee was informed that a third party evaluation commissioned by the railways ministry has established the price of the land to be nearly Rs4 billion.

With occupancy charges and interest, the government owes Railways roughly Rs11bn.

Mr Rafique said that his ministry was willing to accept and receive the cost of the land, as ensured by the government.

“The remaining amount can be paid to Railways when PTCL clears its outstanding dues of $800 million to the Pakistan government,” he said, adding that his ministry was ready to sign a memorandum of understanding on these flexible terms.

The committee observed that the transfer of land to Railways by local governments remains a pressing problem.

Mr Rafique said Khyber Pakhtunkhwa and Balochistan have transferred land in the name of Pakistan Railways following Supreme Court directions.

“However, the local governments of Punjab and Sindh are reluctant to implement these orders. They maintained that the local government owned the lands and that Railways was just a licensee.

“There is absolutely no cooperation, particularly from the Sindh government,” Mr Rafique said, adding that the properties in these two provinces were the most valuable.

He said the ministry was forced to turn to the SC, where a decision has been pending for a year and a half.

Committee chairman Senator Sardar Fateh Mohammad Hassani sought the opinion of the auditor general of Pakistan, who was absent from the meeting again despite being invited twice.

Published in Dawn, February 16th, 2018