Business
ADB investment puts Pakistan Railways back on track | The Express Tribune
KARACHI:
Pakistan’s railway sector, long described as the backbone of national connectivity, is again moving to the forefront of policy debates as the government turns to the Asian Development Bank (ADB) for support.
Years of underinvestment, safety lapses, and the stalling of promised Chinese funds have left Pakistan Railways in a precarious state, forcing policymakers to look elsewhere. Officials confirm that Islamabad is seeking a $2 billion package from the ADB to begin long-awaited modernisation works, most notably on the Karachi-to-Peshawar Main Line-1 (ML-1) route.
The development comes at a time when fiscal pressures, declining freight revenues, and growing competition from road transport have left the railways struggling to perform their role as a cost-effective logistics provider.
Once considered a symbol of national pride, Pakistan Railways now carries around 70 million passengers annually but operates on outdated tracks and antiquated signaling systems. The freight side of operations, which used to generate the bulk of revenue in the 1960s, has collapsed to less than a tenth of overall business, pushing industry and traders onto highways.
This shift has come at a steep cost: logistics expenses in Pakistan are estimated to be about 35% higher than the South Asian regional average, eroding export competitiveness and putting pressure on sectors such as textiles and agriculture. The decaying system has also reduced safety, with derailments and breakdowns becoming more common, further weakening public trust in rail travel.
The ML-1 project has been on the table for years under the China-Pakistan Economic Corridor (CPEC), initially tagged at $6.8 billion but now estimated to exceed $9 billion due to repeated delays and cost escalations. China had long been expected to bankroll the project as part of its Belt and Road Initiative, but its disbursements have slowed dramatically amid Pakistan’s worsening fiscal situation and Beijing’s own economic recalibrations.
The ADB’s decision to intervene, therefore, represents more than just a financial transaction. It reflects Islamabad’s growing reliance on multilateral lenders at a time when bilateral commitments have become uncertain. Analysts suggest the shift also diversifies Pakistan’s options and reduces overdependence on a single source of funding.
The proposed ADB package would target three areas: rehabilitation of ML-1 to allow faster and safer travel, development of a dedicated freight corridor to take pressure off highways, and the introduction of digital systems to monitor and secure railway operations. If executed properly, these changes could enable passenger trains to run at up to 160 kilometres per hour, cut travel time on key routes nearly by half, and encourage a revival of rail-based logistics.
Exporters, especially in the textile sector that accounts for nearly 60% of Pakistan’s exports, see in this a chance to reduce delays and cut costs associated with moving goods to Karachi Port. Improved connectivity between port cities and inland hubs such as Faisalabad and Multan could also enhance Pakistan’s role as a trade corridor linking South Asia with Central Asia.
Economists argue that the benefits go far beyond efficiency. Infrastructure investment of this scale has a multiplier effect, which generates tens of thousands of construction jobs and stimulates industries such as steel, cement, and services. A stronger railway backbone would also reduce the environmental toll of excessive trucking, lowering fuel consumption and emissions.
In a country where energy imports weigh heavily on the balance of payments, the savings could be significant. For passengers, meanwhile, modernised trains and safer systems would restore confidence in a service many have abandoned in favour of buses or private transport.
Pakistan’s external debt now exceeds $130 billion, much of it owed to multilateral lenders, and the repayment capacity remains a concern. While ADB loans are typically concessional, offering softer terms than commercial borrowing, they still require discipline in implementation.
Critics note that past railway projects have often been marred by inefficiency, corruption, and bureaucratic inertia. Without proper oversight and reform, there is a risk that even low-cost financing could add to the country’s debt burden without delivering transformative results. Transparency advocates are calling for the independent monitoring of funds to ensure they are not wasted.
China’s sidelined role also adds a geopolitical dimension. Over the past decade, Beijing has invested more than $25 billion in Pakistan, largely in energy and infrastructure, but its pace of financing has slowed markedly. Analysts attribute this partly to Pakistan’s fragile fiscal position, which increases repayment risks, and partly to China’s shifting global priorities as its own economy faces headwinds.
Some experts argue that China has not abandoned CPEC altogether but is recalibrating its involvement, focusing on selective projects while encouraging Pakistan to diversify its financing sources. In this context, the ADB’s re-emergence as a key financier could be seen less as a replacement and more as a complement to future Chinese investments.
There are lessons to draw. Bangladesh and India have both secured ADB support for rail and metro upgrades, with visible success in enhancing efficiency and safety. Pakistan has lagged behind, partly because of political instability and partly due to a centralised management structure that has resisted reform.
The ADB’s involvement might serve as leverage for Islamabad to introduce governance changes, open space for private sector participation, and embrace technology-driven solutions. Without such reforms, financial injections alone may not lead to the desired turnaround.
The writer is a member of PEC and holds a Master’s in Engineering
Thousands of young people in Scotland will benefit from skilled “clean energy jobs”, the UK Government has said, as it launched its plans to “train the next generation of energy workers”.
Energy Secretary Ed Miliband said the new plan places Scotland “at the very heart of the clean energy revolution”.
The Government said Scotland will see up to 60,000 jobs in greener energy by 2030 – a 40,000 increase from 2023.
Across the UK, it expects employment to double to 860,000 by the end of the decade, including nuclear energy.
It said 31 “priority occupations” had been identified for the switch away from fossil fuels, including plumbers, electricians and welders.
As part of the transition, the Scottish Government said on Sunday it would jointly invest £18 million with the UK Government to enable thousands of North Sea workers to access tailored support to make the change to more sustainable energy.
UK ministers said their new plans include proposals to ensure people in these jobs have “world class pay, terms and conditions”.
They said this includes closing loopholes to extend employment protections enjoyed by offshore oil and gas workers working beyond UK territorial seas.
Initiatives were also announced to encourage more veterans, ex-offenders and unemployed people into the sector.
The UK Energy Secretary said: “Communities across Scotland have long been calling out for a new generation of good industrial jobs.
“The clean energy jobs boom can answer that call – and today we publish a landmark national plan to make it happen and places Scotland at the very heart of the clean energy revolution this Government is delivering.
“Our plans will help create an economy in which there is no need to leave your home town just to find a decent job.
“Thanks to this Government’s commitment to clean energy a generation of young people in Scotland can have well-paid secure jobs, from plumbers to electricians and welders.
“This is a pro-worker, pro-jobs, pro-union agenda that will deliver the national renewal our country needs.”
Scottish Energy Secretary Gillian Martin said: “Scotland’s innovation, expertise and vast renewable energy resources will not only benefit the planet – but deliver new economic opportunities and new jobs for households and communities across the country.
“This continued and expanded funding to the Oil and Gas Transition Training Fund will support more offshore workers to take on different roles across the sustainable energy sector over the next three years – helping to deliver a fair and managed transition to the sector.
“We will continue to explore how best to support Scotland’s energy skills transition, working closely with the UK Government on options like guaranteed interview schemes, redeployment pools and skills passporting.”
Scottish Secretary Douglas Alexander added: “From offshore wind to carbon capture, Scotland is uniquely positioned to lead our clean energy revolution with world-class resources and skilled workers.
“Harnessing the potential of clean energy is an unmistakable example of how the UK Government is delivering for Scotland.
“These 40,000 new opportunities will benefit a generation of young people across Scotland and represent a pivotal moment in our mission to boost economic growth across all parts of the UK.
“This UK Government is putting money directly into the pockets of hardworking Scots.
“This comes alongside Great British Energy’s launch in Aberdeen, which is already unlocking significant investment and helping to create skilled jobs as we make Britain a clean energy superpower.”
Mumbai: India’s private banks showed contrasting trends in asset quality in Q2 FY26, with larger lenders maintaining stability while smaller players, particularly those under new leadership, reported setbacks in earnings. IndusInd Bank and Federal Bank, both navigating transitions under new MDs, did not post year-on-year growth in net profits as the chiefs accelerated clean-ups and strengthened governance.HDFC Bank, the country’s largest private lender, reported a 10.8% rise in net profit to Rs 18,640 crore, driven by a 25% jump in non-interest income and steady improvement in asset quality. MD and CEO Sashidhar Jagdishan said economic activity was improving across customer and product segments, allowing the bank to accelerate loan growth. Asset quality remained a key strength, with the bank maintaining stable ratios for net interest margin, cost-to-income, and return on assets. HDFC Bank also continued its investments in technology and innovation, including GenAI and “lighthouse experiments”, aimed at improving efficiency and customer experience over the next 18-24 months.ICICI Bank’s net profit grew 5.2% to Rs 12,359 crore despite a steep drop in treasury income. Excluding treasury, core operating profit rose 6.5%, reflecting steady underlying performance. Provisions fell 25.9%, helping gross NPAs ease to 1.58% and net NPAs to 0.39%. The lender expanded retail and business banking loans, which now account for more than half its portfolio.IndusInd Bank, under new MD and CEO Rajiv Anand, recorded a net loss of Rs 437 crore as the bank accelerated write-offs and increased provisions in microfinance to strengthen its balance sheet. The lender also continued to contend with legacy issues stemming from prior accounting irregularities. Gross NPAs improved slightly to 3.60%, while net NPAs eased to 1.04% but deposits and advances contracted, and core income fell.YES Bank reported an 18.3% rise in net profit to Rs 654 crore, supported by higher non-interest income, cost efficiency, and retail growth. Net NPAs declined to 0.3% while gross NPAs remained stable at 1.6%. The quarter marked a strategic ownership change, with Sumitomo Mitsui Banking Corporation acquiring a 24.2% stake, and the bank continued to expand its branch network and digital footprint. MD and CEO Prashant Kumar emphasised the business model and strategy remained unchanged, with efforts ongoing to improve revenues, net interest margin, and cost-to-income ratio.Federal Bank posted a 9.5% decline in net profit to Rs 955 crore due to higher provisions, even as gross NPAs fell to 1.83% and net NPAs to 0.48%. Under new MD and CEO KVS Manian, the bank focused on strengthening risk management, increasing mid-yield assets, and expanding digital transactions, which now account for over 92% of all retail and corporate activity.PNB net profit jumps 14% to ₹4904 crorePunjab National Bank reported a 14% rise in Q2 net profit to Rs 4,904 crore, with operating profit up 5.5% to Rs 7,227 crore. Total income grew 5.1%, while net interest income slipped 0.5%. Gross and net NPAs fell to 3.45% and 0.36%, respectively. Advances and deposits rose 10.1% and 10.9%. Retail, agriculture, and MSME loans drove growth. CRAR strengthened to 17.19%, digital transactions surged 31%, and full-year credit growth is expected at 11%-12%.
Last Updated:
Gold and silver sales alone accounted for an astonishing Rs 60,000 crore of the total trade, registering a robust 25% increase from last year’s value
Gold prices have soared by approximately 60% year-on-year, crossing the Rs 1,30,000 per 10-gram mark. (Representational image/News18)
Indian consumers defied a massive surge in prices to spend an estimated Rs 1 lakh crore on Dhanteras this year, showcasing the festival’s undiminished cultural and economic significance. According to the Confederation of All India Traders (CAIT), this massive spending spree marks a significant festive boost, with strong consumer confidence overriding high-cost pressures.
The driving force behind this record expenditure was the traditional purchase of precious metals. Gold and silver sales alone accounted for an astonishing Rs 60,000 crore of the total trade, registering a robust 25% increase from last year’s value. This surge is particularly striking given the steep rise in bullion costs: gold prices have soared by approximately 60% year-on-year, crossing the Rs 1,30,000 per 10-gram mark, while silver prices have also jumped by roughly 55%.
CAIT attributed this resilient demand to the deep-rooted Indian belief in precious metals as the most secure form of investment and an auspicious purchase on Dhanteras, the day that marks the beginning of Diwali celebrations. While volumes may have seen a slight dip, the rise in value was substantial, as many consumers opted for strategic buying—favouring lightweight jewellery, gold coins, and bullion for investment purposes to fulfill the shagun (auspicious tradition).
Beyond bullion, the festive purchasing extended across various sectors, underlining a broad economic recovery. Other major contributors to the Rs 1 lakh crore total included utensils and kitchen appliances (estimated at Rs 15,000 crore), electronic and electrical goods (Rs 10,000 crore), and vehicles, textiles, and decorative items.
The festive spending also received a further boost from the popularity of the “Vocal for Local” campaign, with consumers showing a clear preference for Indian-made products, benefiting small traders and local manufacturers across the country.
Pathikrit Sen Gupta is a Senior Associate Editor with News18.com and likes to cut a long story short. He writes sporadically on Politics, Sports, Global Affairs, Space, Entertainment, And Food. He trawls X via …Read More
Pathikrit Sen Gupta is a Senior Associate Editor with News18.com and likes to cut a long story short. He writes sporadically on Politics, Sports, Global Affairs, Space, Entertainment, And Food. He trawls X via … Read More
October 18, 2025, 22:34 IST
Read More
WNBA star Angel Reese says she’d rather pay a fine than speak to reporters
Vanderbilt poking fun at LSU headlines Week 8 college football trolls
UK Government unveils plan to ‘train up next generation of clean energy workers’
-
Tech1 week agoMen Are Betting on WNBA Players’ Menstrual Cycles
-
Tech1 week agoSize doesn’t matter: Just a small number of malicious files can corrupt LLMs of any size
-
Tech7 days agoAustralian airline Qantas says millions of customers’ data leaked online
-
Entertainment1 week agoPrince Albert of Monaco leads the Monaco Explorations in the Aegean Sea
-
Fashion1 week agoKalki Fashion launches 6,000 square foot flagship store in Mumbai
-
Tech1 week agoThe Shutdown Is Pushing Air Safety Workers to the Limit
-
Tech6 days agoUK police to upgrade illicit asset recovery system | Computer Weekly
-
Business1 week ago‘Every day feels like firefighting’: Hit by EU sanctions over Russian oil – Indian refinery Nayara Energy struggles to sustain operations – The Times of India