ISLAMABAD – The government of Pakistan has approached Gulf states for a $2 billion investment to construct a crucial railway link between Chagai and Gwadar. This new railway line will be essential for transporting minerals from the Reko Diq mines to Gwadar for shipping. The Ministry of Finance, Ministry of Railways, and the Special Investment Facilitation Council (SIFC) have already completed a feasibility report for the project.
However, Gulf investors have requested sovereign guarantees on their investments, which poses a challenge for Pakistan, given its existing commitments under an IMF loan program. The Ministry of Finance raised concerns about providing such guarantees for all investments.
During a briefing to an IMF delegation, SIFC officials highlighted the council’s role in offering a single platform for investment facilitation. The IMF has advised against granting tax exemptions to international investments within the SIFC framework. Ongoing talks between the Ministry of Law and the Ministry of Finance aim to revise the Sovereign Wealth Fund structure to address these issues.
In related news, the New Gwadar International Airport (NGIA) is now fully operational, managing both domestic and international flights. Despite its success, some Western media outlets have spread misleading narratives about the airport’s performance, potentially undermining the achievements of the China-Pakistan Economic Corridor (CPEC). From January 20 to February 26, 2025, NGIA facilitated 42 flights, carrying a total of 1,537 passengers.
