Railway Agreement

09 June 2024

Published in: The Nation

Pakistan’s railway sector has faced significant challenges, being in default for the longest time. However, things have improved since then. Although not a major revenue-earning sector, the railways provide affordable inter-city travel for thousands of Pakistanis and play a vital role in cargo transport. Slow but steady, Pakistan Railways seeks to expand and upgrade. This goal led to the signing of an agreement between Russia and Pakistan to cooperate on railway upgrades at the 27th St. Petersburg International Economic Forum.

From trains arriving late to multiple tragic accidents, the railway sector has improved in punctuality, engine quality, and business-class facilities. Some elements, like booking confirmations and cancellations, have also been digitized. The country’s low-income sector relies heavily on this mode of transport, and its upgrade will directly benefit Pakistani citizens.

Entering into agreements with a country like Russia is a well-calculated move for Pakistan. While Russia may not be suitable for grand, long-term projects due to sanctions, a railway cooperation agreement is just right. Russia’s survival under sanctions demonstrates its economic resilience and continued business with other countries. In a world with multiple power centers, developing countries often enter agreements with mutually at odds nations. For example, the European Union traded natural gas from Russia even during the Ukraine-Russia conflict. The route became indirect, but the gas came from Russia. Europe’s trading priorities surpassed its moral obligations.

For Pakistan, this is a prime moment to fulfill its economic interests with diverse countries. While maintaining decades-long security relations with Turkey and other NATO countries, there is also a need to expand trade with new partners and invite them to invest in our country. This is the most viable way forward.