ISLAMABAD, October 29, 2024: Pakistan Railways (PR) is seeking a significant 130% budget increase for the procurement of approximately 1,050 bogies, raising the estimated cost from Rs31 billion in 2017 to Rs71 billion.
The request is largely attributed to currency depreciation and revised specifications, despite facing strong objections from the ministries of finance and planning.
The proposal includes the purchase of 820 freight wagons and 230 passenger coaches, which was recently presented to the Central Development Working Party (CDWP) but was deferred at the last moment.
Once the CDWP clears the proposal on technical grounds, it will be forwarded to the Executive Committee of the National Economic Council (Ecnec) for formal approval.
As of June 30, 292 freight wagons and 78 passenger coaches have already been procured through two Chinese contractors, with the remaining bogies scheduled for delivery by June 30, 2026.
PR attributed the substantial cost increase to the exchange rate rising from Rs104 in 2017 to Rs285 per US dollar, as well as multiple cancellations of bidding results due to project reassessments related to the upgradation of the ML-1 (Karachi to Peshawar line) under the China-Pakistan Economic Corridor (CPEC).