9 June 2026

From Gilgit to Gwadar, the Lights Come On in Lahore First

Brief.pk

Pakistan's first urban rail system, the Orange Line Metro Train in Lahore, was constructed with Chinese loans and Punjab subsidies, costing over two hundred billion rupees, primarily through the China Pakistan Economic Corridor (CPEC). This "early harvest" urban transport project starkly contrasts with the persistent lack of reliable power and water in CPEC's strategic endpoints, Gilgit-Baltistan and Gwadar.

Shahbaz Sharif, then Chief Minister of Punjab, aggressively lobbied for the Orange Line's inclusion, securing a $1.62 billion EPC contract financed by China Exim Bank. The metro, operational since October 2020, requires an annual subsidy of approximately seven billion rupees, with fare revenue covering less than a quarter of operating costs, and ridership below its 250,000 daily passenger design capacity. This financial strain coincides with Pakistan paying Chinese independent power producers tens of billions in capacity charges for idle generation. Gilgit-Baltistan endures severe electricity outages, its grid integration deferred, while Gwadar faces a critical water shortage, despite a Chinese-funded desalination plant, and Chinese companies enjoy significant tax exemptions at the port. The article highlights how specific political decisions prioritized provincial interests over the corridor's intended strategic development.

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