Punjab government’s $10 billion high-speed rail plan is a disservice to real priorities
The interior of one of the 40 modern passenger coaches that Pakistan Railways received from China.Pakistan Railways
In a country surviving upon largesse from some friends and international lenders, with a dismally low tax base and crippling debt obligations, the Punjab government’s recent Quixotic announcement of a proposal for an estimated $10 billion high-speed rail (HSR) line between Lahore and Islamabad is baffling.
Pakistan’s foreign exchange reserves are at about $10 billion, much of it borrowed sum, good for less than two months of imports. The idea of pouring billions into a vanity rail project, when schools, hospitals, and human development indicators are in decline, is a painful reminder of the disconnect between the country’s ruling elite and its actual needs.
The proposed HSR would cover a distance of 350km and cut travel time between the two cities to around two-and-a-half hours. But in reality, once access, check-in, and traffic around congested stations are factored in, driving between Lahore and Islamabad via the M-2 motorway remains faster, cheaper, and more convenient — especially in a car-oriented culture where door-to-door convenience matters more than rail speed.
Public debt
Pakistan’s public debt now exceeds PKR 80 trillion (approximately $285 billion), according to the State Bank of Pakistan. As of the fiscal year 2023–24, Pakistan’s tax revenues are insufficient to fully cover the interest payments on its public debt, highlighting a significant fiscal challenge. The tax-to-GDP ratio lingers under 10 percent, one of the lowest in the world. And yet, despite these fiscal limitations, in public profligacy the government appears ready to plunge into a $10 billion mega-project that benefits a fraction of the population.
DATE . May/25/2025
