Prime Minister Shehbaz Sharif has directed authorities to explore the commercial use of railway land to help finance the upgradation of Main Line-1 (ML-1) as the government moves to make Pakistan Railways financially self-sustaining.
Chairing a meeting on railway reforms on Wednesday, the prime minister called for faster progress on the ML-1 project and urged the introduction of corporate-style reforms to improve the railway system’s efficiency and financial position.
Railway Land to Support ML-1 Financing
Shehbaz directed authorities to develop ML-1 on a commercial basis by utilizing railway land worth billions of rupees that has been recovered or identified after being illegally occupied.
The prime minister praised the National Accountability Bureau (NAB) and the Ministry of Railways for their joint efforts to identify and recover encroached railway land.
The government aims to use the value of railway assets more effectively as part of efforts to generate resources for the modernization of the country’s main railway corridor.
Focus on Railway Reforms
During the meeting, Shehbaz stressed the need to accelerate work on ML-1 and introduce reforms based on a corporate management model.
The proposed changes are aimed at improving operational efficiency, increasing revenue and reducing the railway system’s reliance on government support.
The prime minister has repeatedly emphasized the need for state-owned enterprises to improve their financial performance and operate more efficiently.
PM Seeks Better Access to Financing
In a separate meeting focused on access to finance, Shehbaz directed authorities to remove barriers affecting lending to housing, agriculture and small and medium-sized enterprises (SMEs).
He called for a more effective financing system and instructed the Small and Medium Enterprises Development Authority (SMEDA) to take measures to strengthen the capacity of SMEs.
The meeting also reviewed the lending performance of the National Bank of Pakistan (NBP).
Shehbaz Praises Housing Loan Approval Rate
The prime minister welcomed NBP’s reported 76 percent approval rate for housing finance and called for further steps to improve access to home loans.
He also urged other provinces to follow the Punjab model of digitizing land records, saying better digital land records could make it easier for banks to process and provide housing finance.
The government is seeking to combine railway asset development, institutional reforms and improved access to credit as part of its broader efforts to strengthen economic activity and reduce pressure on public finances.
