Project

Subject: 42 Trends in Global Business

42 42 42

Submitted To: 42

42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 Mam Marium Shabbir

42 42

Submitted By: 42

42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 Zeeshan Tariq 42 (17232720-002)

42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 Mehran Riaz 42 (17232720-016)
Saqlain Javed
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 (17232720-042) 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

Muhammad Babar Ali

42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 (17232720-088)

Department:
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 Faculty of Management & Administrative Sciences.
42 42 42 42 42

Degree:
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 MBA 3.5 Years (7th Semester)
42 42 42 42

Date: 42 42 42 42 42 42 42 42

42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 20 December 2020
42 42 42

1
2
1. Introduction to Project 42 42

1.1. Mission & vision 42 42

1.2. Objective

1.3. Industry to which it belong 42 42 42 42

1.4. Entry strategy of the firm

42 42 42 42

1.5. Project Scope 42

1.6. Milestone List 42

1.7. Schedule Baseline and Work Breakdown Structure

42 42 42 42 42

1.8. Change Management Plan 42 42

1.9. Communications Management Plan 42 42

1.10. Cost Management Plan42 42

1.11.Quality Management Plan 42 42

1.12.Legal documentations 42

1.13.Transparent Information 42

1.14.Risk Management Plan

42 42

2. Problem statement associated with project

42 42 42 42

3. Recent social Trending events relative to the international project

42 42 42 42 42 42 42 42 42

4. Cultural differences caused by this Project

42 42 42 42 42

5. What International Trade theory supports this trade activity

42 42 42 42 42 42 42

6. Challenges 42

6.1. Borderless trade 42

6.2. Financial risk 42

3
 1. Introduction:
1.1Project title 42 42

42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 Rehabitation and upgradation of Karachi- Lahore 42 42 42 42 42 42 42

Peshawar ML1 Railway Track (1872Km) 42 42 42 42

1.2Vision and mission statements 42 42 42

42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 Projects to create jobs and Boost economy 42 42 42 42 42 42

1.3Project Information 42 42

The Main Line-1 (ML-1) of Pakistan Railways is passenger-freight shared railway line. It is
42 42 42 42 42 42 42 42 42 42 42 42 42 42

also a main corridor for North-South transportation. The infrastructure of ML-1 has become
42 42 42 42 42 42 42 42 42 42 42 42 42

aged and obsolete after being in operation for a long time. The tracks at most of locations
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

are in dilapidated condition and the track geometry has deformed in several areas. ML -1
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

extends from Kiamari (Karachi) in the south of Pakistan, to Peshawar/Torkham in the

42 42 42 42 42 42 42 42 42 42 42 42 42

northwest, covering about 1,750 kilometres and passing through Hyderabad, Rohri (Sukkur),
42 42 42 42 42 42 42 42 42 42 42

Multan, Lahore and Rawalpindi stations. ML-1 also includes the 91 km chord line between
42 42 42 42 42 42 42 42 42 42 42 42 42 42

Lodhran and Khanewal and the 55 km section between Taxila and Havelian. Thus, ML -1
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

extends over a total route length of 1,872 kilometres. The entire railway track on ML -1 is
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

broad gauge (1,676 mm or 5 feet 6 inches). ML -1 has 196 big and small railway stations.
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

Pakistan Railway has planned to upgrade / overhaul infrastructure of ML-1 under China
42 42 42 42 42 42 42 42 42 42 42 42 42

Pakistan Economic Corridor (CPEC) framework including track, bridges, tunnels, buildings,
42 42 42 42 42 42 42 42 42 42

signalling, telecommunication systems, track maintenance system, rolling stock maintenance

42 42 42 42 42 42 42 42 42

and overhauling facilities, establishment of Dry Port near Havelian, etc. besides dualization
42 42 42 42 42 42 42 42 42 42 42 42

of track between Peshawar and Shahdara. (A brief on the project and current status is
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

enclosed as Appendix-A) 42 42

1.4 Objectives of the Expression of Interest (EOI)

42 42 42 42 42 42 42 42

The objective of EOI is to pre-qualify professional consulting firms / consortium of firms for
42 42 42 42 42 42 42 42 42 42 42 42 42 42

construction supervision of the complex and integrated project. The selected firms will be
42 42 42 42 42 42 42 42 42 42 42 42 42 42

eligible for issuance of Request for Proposal (RFP) for final selection. Selected firm/
42 42 42 42 42 42 42 42 42 42 42 42 42

consortium shall provide services of Resident Construction Supervision and review/ approval
42 42 42 42 42 42 42 42 42 42 42

of design submitted by EPC contractor.

42 42 42 42 42

1.5 Scope of Consultancy Services

42 42 42 42 42

The broad scope of consultancy services would be Project Management Consultancy services
42 42 42 42 42 42 42 42 42 42 42

including resident construction supervision and review / approval of design submitted by the
42 42 42 42 42 42 42 42 42 42 42 42 42

EPC contractor. Detailed scope of services and Term of Reference (TOR) shall be provided
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

4
along with the RFP. Final selection shall be made on the basis of quality and cost, through
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

submission of Technical and Financial Proposals by the firms to whom RFP has been issued
42 42 42 42 42 42 42 42 42 42 42 42 42 42

 Doubling of entire track from Karachi to Peshawar

42 42 42 42 42 42 42

 Speed of passenger trains to be raise from 65/110km/h to 160 km/h

42 42 42 42 42 42 42 42 42 42 42

 Freight trains to operate at 120 km/h

42 42 42 42 42 42

 Computer based signaling and control system 42 42 42 42 42

 Grade separation to ensure safety of train operations

42 42 42 42 42 42 42

1.6Industry to which it belong 42 42 42 42

Karachi to Peshawar via Hyderabad, Nawabshah, Rohri, RahimyarKhan, Bahawalpur,

42 42 42 42 42 42 42 42 42

Khanewal, Sahiwal, Lahore, Gujrawala, Rwalpindi, Peshwar

42 42 42 42 42

Work will be carried out by financing possibly through Chinese Government Concessional
42 42 42 42 42 42 42 42 42 42 42 42

Loan (GCL). Work will be awarded through open bidding as per PPRA rules through EPC
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

contract

The firm applying for the Expression of Interest (EOI) for Project Management Consultancy
42 42 42 42 42 42 42 42 42 42 42 42 42

Services for Up-gradation / overhauling of ML-1 of Pakistan Railways.

42 42 42 42 42 42 42 42 42

Project Implementation Unit/CPEC, Pakistan Railways.

42 42 42 42 42

1.7Entry strategy of the firm 42 42 42 42

Joint Venture
42

Firms enter through joint venture because in this project involvetwo countries Pakistan as
42 42 42 42 42 42 42 42 42 42 42 42 42

well as China.
42 42

And in construction of railways companies of both countries involve and work according to
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

their rules.42

So, firms enter through joint venture strategy.

42 42 42 42 42 42

1.8Responsibilities
I. Proposing Agency: Ministry of Railways 42 42 42 42

II. Implementing Agency: Pakistan Railways 42 42 42

III. Supervising Agency: Ministry of Communications, Government of Pakistan

42 42 42 42 42 42 42

5
Milestone List
42

6
1.9Schedule Baseline and Work Breakdown Structure
42 42 42 42 42

7
 1.10 Change Management Plan 42 42

it is expected that this multi-billion dollar CPEC project will be completed in three phases.
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

Earlier this year in April, Pakistan and China decided to amend the terms of agreement of
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

the Mainline-1 railway project under the China-Pakistan Economic Corridor (CPEC). The
42 42 42 42 42 42 42 42 42 42 42

project has now been reduced to 1680 km from 1872 km. As mentioned on the CPEC’s
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

official website, the ML-1 railway project will operate under the Build-Operate-Transfer
42 42 42 42 42 42 42 42 42 42 42

(BOT) model through a public-private partnership. Initially, the deadline for the project was
42 42 42 42 42 42 42 42 42 42 42 42 42

set at three years, but now it’s been extended to six. The government of Pakistan has also
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

decided to exclude a component of the project: the 163 km long double line between
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

Karachi and Hyderabad. 42 42

As mentioned, earlier this year, the government of Pakistan had set up an Implementation
42 42 42 42 42 42 42 42 42 42 42 42 42 42

Committee for the ML-1 railway project to review the cost of the existing $8.2 billion and
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

make it more financially viable. According to the original plan, the project was divided into
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

two phases, but it will now be split into more than two phases. Some other parts of the
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

original plan, e.g. the construction of a 1,872 km long line of Pakistan Railways, have also
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

been dropped. 42

The project faced over three years of delay. Therefore, the scope of the project was reduced
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

to cut down the project costs. The phase-I of the ML-1 railway project will cost around $2
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

billion, while the initial estimate hovered around $3.4 billion. In addition, some parts of the
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

ML-1 will be funded by the Public Sector Development Programme to avoid reliance on
42 42 42 42 42 42 42 42 42 42 42 42 42 42

China.

As per the framework agreement for the ML-1, China – Pakistan’s all-weather friend – was
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

supposed to provide 85% of the project cost as a concessionary loan.

42 42 42 42 42 42 42 42 42 42 42

Phase-1 of ML-1 railway project 42 42 42 42

Under Phase-1 of the project, four sections will be completed in a period of three to four
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

years. Most of these sections will be built from Rawalpindi to Lahore. As per a report
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

published in an English daily, “A 52-km-long second line for running 120 km per hour high-
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

speed train will be constructed from Kaluwai to Pindora. The other sections include
42 42 42 42 42 42 42 42 42 42 42 42 42

upgrading of Nawabshah-Rohri section of 183km, Lalamusa-Rawalpindi section of 118km,

42 42 42 42 42 42 42 42 42 42

and Lahore-Lalamusa section of 132km. The upgrading of Walton Railway Academy with a
42 42 42 42 42 42 42 42 42 42 42 42 42

reduced scope is also part of phase one.”

42 42 42 42 42 42 42

Phase-2 of ML-1 railway project 42 42 42 42

It is expected that the second phase would require a period of three years to complete in
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

which the Multan-Lahore section and Kimari-Hyderabad section will be developed. The
42 42 42 42 42 42 42 42 42 42 42

8
second phase of ML-1 railway project mainly includes the construction of the dry port at
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

Havelian but its scope has been reduced to cut down project costs.
42 42 42 42 42 42 42 42 42 42 42

Phase-3 of ML-1 railway project 42 42 42 42

As part of the third phase of the railway line’s refurbishment and upgradation, the two
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

neighbouring countries have agreed to construct a Rawalpindi-Peshawar section and

42 42 42 42 42 42 42 42 42 42

Hyderabad-Multan section. 42

1.11 Communications Management Plan 42 42

As per the plan, the Chinese Government under CPEC would provide 90% of the financing
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

of the project. The project is also expected to generate 150,000 jobs in the country. Basharat
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

Waheed, the CPEC project head in Ministry of Railways told CEN, “The entire track from
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

Karachi to Peshawar would be upgraded.

42 42 42 42 42

The worn-out earthworks under the existing 150-year-old railway line will be completely
42 42 42 42 42 42 42 42 42 42 42 42

uprooted and fresh sleepers and rails would be installed with new earthworks with an
42 42 42 42 42 42 42 42 42 42 42 42 42 42

estimated lifespan of at least 50 years”. He said the existing railway line between Shadra
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

Lahore to Peshawar was single-track, so it would be doubled. The majority of the old
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

bridges under ML-1 from Karachi to Peshawar would be reconstructed or renovated.

42 42 42 42 42 42 42 42 42 42 42

All of the curves between Lalamusa Punjab and Karachi would be realigned to allow the
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

track to withstand a speed of up to 160km/hour. All 665 crossings over the existing ML-1
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

would be replaced with flyovers or underpasses while both sides of the line would be
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

fenced. In transiting the cities, the railway line would be protected via concrete walls. “From
42 42 42 42 42 42 42 42 42 42 42 42 42 42

Peshawar to Karachi, a modern computer-operated signalling system would be installed to

42 42 42 42 42 42 42 42 42 42 42 42 42

minimize the risk of accidents,” Basharat Waheed said.

42 42 42 42 42 42 42

He added, “Under the new project, the three different traffic control systems would be
42 42 42 42 42 42 42 42 42 42 42 42 42 42

integrated into a single centralized system in Lahore, and for communication, an optical fiber
42 42 42 42 42 42 42 42 42 42 42 42 42

from Karachi to Peshawar would be laid along ML-1”.

42 42 42 42 42 42 42 42 42

1.12 Cost Management Plan 42 42

The phase-I of the ML-1 railway project will cost around $2 billion, while the initial
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

estimate hovered around $3.4 billion. In addition, some parts of the ML-1 will be funded by
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

the Public Sector Development Programme to avoid reliance on China.

42 42 42 42 42 42 42 42 42

9
 1.13 Quality Management Plan 42 42

There will always be change to manage, of course, but before accepting any change request
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

calculate the impact on your quality, as well as cost, scope and time.
42 42 42 42 42 42 42 42 42 42 42 42

Audit your process throughout the project life cycle to make sure you’re always working at
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

a high level and hitting the benchmarks laid out in your quality management plan. Meet with
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

your stakeholders and team regularly and get their feedback.

42 42 42 42 42 42 42 42 42

All decided that no activites ae included in the project that harm the society.
42 42 42 42 42 42 42 42 42 42 42 42 42

1.14 Legal documentations 42

Pakistan’s most valuable and strategic project under China-Pakistan Economic Corridor
42 42 42 42 42 42 42 42 42 42

(CPEC) – US$6.8 billion railway modernization Mainline-1 (ML-1) – finally received the
42 42 42 42 42 42 42 42 42 42 42 42

green signal from the country’s top economic body.

42 42 42 42 42 42 42

It Is legal because the chinese government Pakistan government and Pakistan railways
42 42 42 42 42 42 42 42 42 42 42 42

approved this project. 42 42

1.15 Transparent Information 42

ML-1 railway line project will turn Pakistan, particularly Peshawar into a global business
42 42 42 42 42 42 42 42 42 42 42 42 42

hub & help open up Central Asia, says a report published by China Economic Net (CEN) on
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

Thursday.
42

ML-1 project will boost business activities in the city. Ashfaq Khattak, who in the past
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

served as Chief Executive Officer and General Manager of Pakistan Railways told CEN that
42 42 42 42 42 42 42 42 42 42 42 42 42 42

with the completion of ML-1, trade and commerce activities would increase in Peshawar
42 42 42 42 42 42 42 42 42 42 42 42 42

city. “Peshawar will become a dry port and a business hub,” he said. According to Pakistan
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

Railways Director Public Relations Quratul Ain, ML-1 was expected to be completed in
42 42 42 42 42 42 42 42 42 42 42 42 42

three different phases over an eight-year period. That is a great sign of hope for people who
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

have not got these facilities since hundreds of years, he added.

42 42 42 42 42 42 42 42 42 42

1.16 Risk Management Plan 42 42

According to preventive method analysis it is concluded that generally risk is transferred to

42 42 42 42 42 42 42 42 42 42 42 42 42 42

other party or they refer previous and ongoing similar projects

42 42 42 42 42 42 42 42 42

o Whenever project objectives are suffer they 42 42 42 42 42

o Closely coordinate with their subcontractors,42 42 42 42

o Increase manpower and 42 42 42 42

o Increase working hours. 42 42

10
 2. Problem statement associated with project 42 42 42 42

In this project ML1 There are no problem statement associated .All terms and conditions
42 42 42 42 42 42 42 42 42 42 42 42 42 42

fixed with Chinese and Pakistan government.

42 42 42 42 42

3. Recent social Trending events relative to the international project

42 42 42 42 42 42 42 42 42

In chines and Pakistan government cooperation many internal event whish are held by
42 42 42 42 42 42 42 42 42 42 42 42 42

globally are considered. All the activities due to CPEC. And this is the major project related
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

to CPEC.
42

4. Cultural differences caused by this Project 42 42 42 42 42

There area lot of cultural difference regarding to this project because it held and near two
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

countries . so both are attract the culture of another countries, peoples.

42 42 42 42 42 42 42 42 42 42 42 42

5. What International Trade theory supports this trade activity

42 42 42 42 42 42 42

The classical theory support the trade activity of ML1 project. In this project exports are
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

greater then imports. 42 42

42
6. Challenges
6.1Borderless trade 42

Both countries also shared the vision for developing effective railway system from Kashghar
42 42 42 42 42 42 42 42 42 42 42 42 42

to Gwadar which would provide a cost competitive mode of transportation and instant
42 42 42 42 42 42 42 42 42 42 42 42 42

connectivity to China for transportation 42 of goods. 42 42 42 42 42

The official said, railways transportation is a critical element of connectivity between

42 42 42 42 42 42 42 42 42 42 42 42

Pakistan and China, adding, the implementation of railways projects would have a
42 42 42 42 42 42 42 42 42 42 42 42

tremendous impact on socio-economic development of the region.

42 42 42 42 42 42 42

During a recent meeting between Pakistani and Chinese officials held in Beijing, both sides
42 42 42 42 42 42 42 42 42 42 42 42 42 42

expressed satisfaction over cooperation in railways projects including the ML1 (Karachi-
42 42 42 42 42 42 42 42 42 42

Peshawar) railway project and China and discussed ways of its speedier implementation.
42 42 42 42 42 42 42 42 42 42 42

Quetta-Peshawar and Havilian-Khunjrab would be linked through railway in the next phase
42 42 42 42 42 42 42 42 42 42 42 42

to be started after this upgradation.

42 42 42 42 42

11
6.2Financial risk 42

After identifying the risk involved in a Railway project, it is very important to look at the
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

techniques for analyzing project cash flow, which is a major function of risk management
42 42 42 42 42 42 42 42 42 42 42 42 42 42

process.

 Delayed payments on contract 42 42 42

 Unmanaged cash flow 42 42

 Inflation
 Financial failure of the contractor 42 42 42 42

 Construction cost overruns 42 42

 Labor and Material Costs (Contract, Outsourced)

42 42 42 42 42

 Interest Rate Changes (Credit and Interest Rate risk)

42 42 42 42 42 42 42

6.3POLITICAL RISK 42

New governmental acts or legislations

42 42 42 42

6.4LEGAL RISK 42

 Ambiguity of work legislations 42 42 42

 Difficulty to get 42 42

 Disputes among the parties of contract 42 42 42 42 42

Many of government agencies / civic bodies etc. that are affected in one or other by the
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

development of this Railway line, had to grant various approvals for the project, which is
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

going to be a complex and time consuming process during the construction period. So, the
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

government should provide a single window clearance for a project of this magnitude.
42 42 42 42 42 42 42 42 42 42 42 42

6.5MANAGEMENT RISK 42

 Poor communication between involved Parties

42 42 42 42

 Improper planning 42

 Changes in management ways 42 42 42

 Resource management 42

 Management of Contracts & Joint Ventures 42 42 42 42 42 42

Management risk are found to be very important risk in such a projects who are dealing
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

with public enterprises. Here railway ministry outs the tender to the private entities, and
42 42 42 42 42 42 42 42 42 42 42 42 42 42

private entities work in their comfort according to available resources. Sometimes resources
42 42 42 42 42 42 42 42 42 42 42 42

are not available on time so to mitigate such a risk they should have alternate options of
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

dealers available, so that project should not stop due to unavailability of resources.
42 42 42 42 42 42 42 42 42 42 42 42

12
6.6New directions 42

Everything fix in contract . There are some opportunities and changes which are fix in phase
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

three.
42

6.7New markets 42

All things are fixed. Its near Pakistan to china. Both mcountries market take benefits in this
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

project according to their own needs.

42 42 42 42 42

6.8Recent Political Developments 42 42

No any development exists politicall in ML1 project.In this project both countries take
42 42 42 42 42 42 42 42 42 42 42 42 42

benefits . 42

7. Political economy and FDI 42 42 42 42

o Costs and benefits to host countries

42 42 42 42 42

o Benefits to host countries 42 42 42

o Effects on Resource — Transfer 42 42 42 42

Resource transfer effect to host country, It may include a lot of benefits of host country
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

 Capital

Free capital transfer across nations regulations, capital-holders are very likely to seek
42 42 42 42 42 42 42 42 42 42 42 42 42

highest rate of return. It causes that the countries which are in need of capital, try to attract
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

MNEs to invest. A lot of MNEs , with the help of their big size and financial strength, get
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

accessibility to fiscal instruments and opportunities which may not be ready to use to
42 42 42 42 42 42 42 42 42 42 42 42 42 42

company’s of landlord nation. These funds are likely to be ready to use for MNEs. That
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

situation is caused by the multi national enterprises’ popularity, huge MNEs more easily
42 42 42 42 42 42 42 42 42 42 42 42 42

access to money from capital markets than host country firms would. That situation helps
42 42 42 42 42 42 42 42 42 42 42 42 42 42

MNEs to invest their money to host country and get higher return rate with the help of the
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

MNEs, the host country gets the investment.

42 42 42 42 42 42

And the capital of Pakistan increased as well as other country capital increase in FDI.
42 42 42 42 42 42 42 42 42 42 42 42 42 42

 Technology

It is evident that the having appropriate technology has a great amount of correlation with
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

being improved country or not. If a country has enough technology, they can directly
42 42 42 42 42 42 42 42 42 42 42 42 42 42

evacuate their technology to different country and make great money. Because technology is
42 42 42 42 42 42 42 42 42 42 42 42 42

an expensive resource so the technology of host country like Pakistan improve by FDI.
42 42 42 42 42 42 42 42 42 42 42 42 42

13
Freight trains will be operated at 120 km/h Freight trains load to be increased from 2400 to
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

3400 tons ML-1 project will double the entire track from Karachi to Peshawar Modern
42 42 42 42 42 42 42 42 42 42 42 42 42 42

signalling and control system to be established. 42 42 42 42 42 42

 Management

Foreign expertise for management which are gained by FDI is very helpful for the landlord
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

country. The mentioned benefits take place with different ways. First, the investing MNE can
42 42 42 42 42 42 42 42 42 42 42 42 42

train the host country’s citizen to expertise on their respectively occupation. This way is
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

thought to be cheaper. Secondly, the investing MNE can bring their own employees from
42 42 42 42 42 42 42 42 42 42 42 42 42 42

their company’s nation and with making this, the invested company’s brunch may has
42 42 42 42 42 42 42 42 42 42 42 42 42

already trained employees to manage the business in landlord company. These benefits
42 42 42 42 42 42 42 42 42 42 42 42

sometimes get less if the mentioned benefits are unique for the investing MNE’s company.
42 42 42 42 42 42 42 42 42 42 42 42 42 42

And this is happen in this project.

42 42 42 42 42 42

 Employment Effects 42 42

Main Line-1 project will generate numerous employment opportunities for people.
42 42 42 42 42 42 42 42 42

In ML1 Pakistan people take advantage in employment.

42 42 42 42 42 42 42

 Balance of Payments Effects 42 42 42

There is increase in export for a Pakistan due to ML1. it increasing export increases cash
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

inflow to the host country. Again when host country makes payment to other country or
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

imports goods, there is cash outflow.

42 42 42 42 42

So in both way host country take benefits.

42 42 42 42 42 42 42

 Development

Pakistan developed in ML1 project. Because in Pakistan a lot of distance close between the
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

regions of Pakistan and directly Pakistan with China due to ML1 railway project.and many
42 42 42 42 42 42 42 42 42 42 42 42 42 42

of development arises because it attached with CPEC.

42 42 42 42 42 42 42 42

 Income

It’s a lot of benefits in terms of income because its worth more than 3.2 billion. So a lot of
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

income generate when project complete.

42 42 42 42

 Training of local manager 42 42 42

14
ML1 project trained our local Pakistanies manager.
42 42 42 42 42 42

Cost of host country 42 42 42

Three costs of FDI concern host countries. They arise from possible adverse effects on
42 42 42 42 42 42 42 42 42 42 42 42 42 42

competition within the host nation, adverse effects on the balance of payments, and the
42 42 42 42 42 42 42 42 42 42 42 42 42 42

perceived loss of national sovereignty and autonomy.

42 42 42 42 42 42

Adverse Effect on Competition 42 42 42

The MNEs which directly invests to another county may have “too much” power and kill
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

off competition. Even though the landlord country’s government seems to be satisfied with
42 42 42 42 42 42 42 42 42 42 42 42 42

the positive effects of the FDI, sometimes they start to have some concerns with the gaining
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

or being too much strength of foreign investor can cause deadly effect on the competition.
42 42 42 42 42 42 42 42 42 42 42 42 42 42

Adverse Effect on Balance of Payments 42 42 42 42 42

The MNE country, will take their money and takes their home nation The money and capital
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

generated by the FDI will not be staying in the landlord country’s account forever.
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

Eventually.

Perceived Loss of National Sovereignty 42 42 42 42

National sovereignty problems are caused by the having too much power for a foreign multi
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

national enterprise. Some argue that a foreign multi national enterprise with great amount of
42 42 42 42 42 42 42 42 42 42 42 42 42 42

economic and governmental power would be too active on the landlord nation’s internal
42 42 42 42 42 42 42 42 42 42 42 42 42

businesses.and this is happen in ML1 project. 42 42 42 42 42 42

Costs and benefits to home countries

42 42 42 42 42

 Employment

Creation of jobs in higher skill categories. The home country employess hire in higher
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

categories and host countries in low categories. So, in home countries take advantage of
42 42 42 42 42 42 42 42 42 42 42 42 42 42

higher categories’. 42

 Consumer

Consumer take benefits of lower price and its ultimately used by people of china Pakistan
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

and other countries and all consumers take benefits from this project.
42 42 42 42 42 42 42 42 42 42

 Improves exports 42

15
Export improves foe the construction of this railway track . Because production are high and
42 42 42 42 42 42 42 42 42 42 42 42 42 42

FDI increase in Pakistan and all other countries believe and finacing and investment in
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

Pakistan.

 New skills and technology 42 42 42

Due to ML1 project home country developed new skills and technology and take a lot of
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

beneifit from this project. 42 42 42

 Capital

The home country balance of payment suffer in FDI.

42 42 42 42 42 42 42 42

 Economy disturb 42

If construction in host countries decrease due to any legal or political pressure then the
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

economy of home country disturb. 42 42 42 42

 CA suffered if foreign investment is to serve the home market from the low-cost
42 42 42 42 42 42 42 42 42 42 42 42 42 42

production location; 42

Capital amount of home country suffer from low cost production .if foreign market serve in
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

low price then home country market disturb.

42 42 42 42 42 42

8. Regional Economic Integrations of that region and their impact 42 42 42 42 42 42 42 42 42

on Project 42

Regional economic integration occurs when countries come together to form free trade areas
42 42 42 42 42 42 42 42 42 42 42 42 42

or customs unions, offering members preferential trade access to each others' markets. The
42 42 42 42 42 42 42 42 42 42 42 42 42

article reviews the economic effects of such agreements on member countries and on the
42 42 42 42 42 42 42 42 42 42 42 42 42 42

world trading system. Effects on member countries include the benefits and costs of trade
42 42 42 42 42 42 42 42 42 42 42 42 42 42

creation and trade diversion, as well as gains from increased scale and competition. ‘Deeper’
42 42 42 42 42 42 42 42 42 42 42 42 42

integration can be pursued by going beyond abolition of import tariffs and quotas, to further
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

measures to remove market segmentation and promote integration. Effects on the world
42 42 42 42 42 42 42 42 42 42 42 42 42

trading system are not clear-cut. There is little evidence that regionalism has retarded
42 42 42 42 42 42 42 42 42 42 42 42 42

multilateral liberalization, but neither is there support for the view that continuing expansion
42 42 42 42 42 42 42 42 42 42 42 42 42

of regional agreements will obviate the need for multilateral liberalization efforts.
42 42 42 42 42 42 42 42 42 42

Regional integration is often seen as less relevant for resource-rich countries, since demand
42 42 42 42 42 42 42 42 42 42 42 42 42

for commodities typically comes from the global market rather than from regional demand.
42 42 42 42 42 42 42 42 42 42 42 42 42

Regional integration in Africa, however, can play a vital role in diversifying economies away
42 42 42 42 42 42 42 42 42 42 42 42 42

from dependence on the export of just a few mineral products; in delivering food and
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

energy security; in generating jobs for the increasing number of young people; and in
42 42 42 42 42 42 42 42 42 42 42 42 42 42

alleviating poverty and delivering shared prosperity.

42 42 42 42 42

16
 Benefits of regional economic integration in ML1 42 42 42 42 42 42

 Gains in Trade 42 42

Trade gains are one of the major advantages of regional integration for individual member
42 42 42 42 42 42 42 42 42 42 42 42 42 42

states. Besides the European Union, other trade-related regional integration policies include
42 42 42 42 42 42 42 42 42 42 42

numerous agreements in Africa: for example, the Southern African Customs Union
42 42 42 42 42 42 42 42 42 42 42

Agreement, the Multilateral Monetary Agreement and the Indian Ocean Commission. In
42 42 42 42 42 42 42 42 42 42 42

various ways, these agreements make moving goods across borders in Africa easier. This
42 42 42 42 42 42 42 42 42 42 42 42 42

leads to gains in trade. Trade agreements that open borders allow a country with a
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

particularly strong industry, like wool production, to sell its goods to an even bigger market
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

outside of the country of origin. This leads to monetary gains for countries involved, through
42 42 42 42 42 42 42 42 42 42 42 42 42 42

more profits for the country of origin and through cheaper products for the importing
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

country. However in future free trade agreement in Pakistan and China.

42 42 42 42 42 42 42 42 42 42

 Economies of Scale 42 42

 Limited Fiscal Capabilities 42 42

Some regional integration agreements that involve the creation of a common currency --
42 42 42 42 42 42 42 42 42 42 42 42 42

most notably the European Union's -- lead to fiscal crises. Without regional integration,
42 42 42 42 42 42 42 42 42 42 42 42 42

individual countries can control the supply of their own currency to suit the nation's
42 42 42 42 42 42 42 42 42 42 42 42 42 42

economic conditions. When a higher entity controls that currency -- as is the case with the
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

EU's euro -- individual countries have no power to vary the strength of their currency when
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

their economy weakens. This occurred when Greece's national finances were very weak, and
42 42 42 42 42 42 42 42 42 42 42 42 42

its economy suffered. If it could have printed more currency to pay its bills, the country's
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

financial situation would not have been as weak. The European Union, however, controlled
42 42 42 42 42 42 42 42 42 42 42 42 42

the country's currency, which left it little power to fix its own economy.
42 42 42 42 42 42 42 42 42 42 42 42

 Cultural Centralization 42

It change the culture of Pakistan and china because both are close together.
42 42 42 42 42 42 42 42 42 42 42 42

Growth and infrastructure 42 42

It will change the infrastructure of Pakistan and take positive changes in infrastructure and
42 42 42 42 42 42 42 42 42 42 42 42 42 42

positive changes in exports. 42 42 42

9. Global Production 42 42 42

Globally ML-1 project is completed, all manned and unmanned level-crossing will be
42 42 42 42 42 42 42 42 42 42 42 42

abolished. The level crossings would be turned into under passes or overhead bridges under
42 42 42 42 42 42 42 42 42 42 42 42 42 42

this project. The train would be running at a speed of 160 kilometers per hour. The PC-1
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

concerning ML-1 has been submitted to the planning ministry and agreement is hopefully be
42 42 42 42 42 42 42 42 42 42 42 42 42

signed on May 10, 2020. The five new freight trains would be introduced before June 30.
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

The new coaches and trains will be arriving in the country and 75 percent old coaches
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

would be upgraded. The coal special trains would start from Faisalabad, Chishtian,
42 42 42 42 42 42 42 42 42 42 42 42

Wazirabad, Kundian and Jia Bagga. The fencing would be made along track under ML-1
42 42 42 42 42 42 42 42 42 42 42 42 42 42

project and railways would try to ensure plantation along the fence.
42 42 42 42 42 42 42 42 42 42

17
 10. What factors to be focused? 42 42 42 42

With completion of 90 percent designing work for much-awaited Mainline-1 under CPEC,
42 42 42 42 42 42 42 42 42 42 42 42

the government has asked Ministry of Railways to update the PC-1 for re-submission before
42 42 42 42 42 42 42 42 42 42 42 42 42 42

Planning Commission with expectation that its cost would go up beyond $10 billion
42 42 42 42 42 42 42 42 42 42 42 42 42

(Rs1,543).

Although, coronavirus had negatively impacted Chinese economy but Pakistani authorities
42 42 42 42 42 42 42 42 42 42

seemed confident that the multibillion project of ML-1 would be on ground from next fiscal
42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

year 2020-21 in July after completion of all procedural/approval requirements before June
42 42 42 42 42 42 42 42 42 42 42 42

2020.

11. Conclusion and recommendations 42 42

 Conclusion

Most road projects today involve modifications to existing roadways, and the planning,
42 42 42 42 42 42 42 42 42 42 42 42

operation, and maintenance of such projects often are opportunities for improving ecological
42 42 42 42 42 42 42 42 42 42 42 42

conditions. A growing body of information describes such practices for improving aquatic
42 42 42 42 42 42 42 42 42 42 42 42

and terrestrial habitats.

42 42

The assessment of the cumulative impacts of road construction and use is seldom adequate.
42 42 42 42 42 42 42 42 42 42 42 42 42 42

Although many laws, regulations, and policies require some consideration of ecological
42 42 42 42 42 42 42 42 42 42 42

effects of transportation activities, such as road construction, the legal structure leaves
42 42 42 42 42 42 42 42 42 42 42 42

substantial gaps in the requirements. Impacts on certain resources are typically authorized
42 42 42 42 42 42 42 42 42 42 42 42

through permits. Permitting programs usually consider only direct impacts of road
42 42 42 42 42 42 42 42 42 42 42

construction and use on a protected resource, even though indirect or cumulative effects can
42 42 42 42 42 42 42 42 42 42 42 42 42 42

be substantial (for example, effects on food web components). The incremental effects of
42 42 42 42 42 42 42 42 42 42 42 42 42

many impacts over time could be significant to such resources as wetlands or wildlife.
42 42 42 42 42 42 42 42 42 42 42 42 42

With the exception of certain legally specified ecological resources, such as endangered or
42 42 42 42 42 42 42 42 42 42 42 42 42

threatened species and protected wetlands, there is no social or scientific consensus on which
42 42 42 42 42 42 42 42 42 42 42 42 42

ecological resources affected by roads should be given priority attention. In addition, current
42 42 42 42 42 42 42 42 42 42 42 42 42

planning assessments that focus on transportation needs rarely integrate other land-
42 42 42 42 42 42 42 42 42 42 42

management objectives in their assessments 42 42 42 42

 Recommendations

The many opportunities that arise for mitigating or reducing adverse environmental impacts
42 42 42 42 42 42 42 42 42 42 42 42

in modifications and repairs to existing roads should not be overlooked. Environmental

42 42 42 42 42 42 42 42 42 42 42 42

considerations should be included when plans are made to repair or modify existing roads, as
42 42 42 42 42 42 42 42 42 42 42 42 42 42

well as when plans are made to build new roads.

42 42 42 42 42 42 42 42 42 42

18
Additional research is needed on the long-term and large-scale ecological effects of roads
42 42 42 42 42 42 42 42 42 42 42 42 42

(such as watersheds, ecoregions, and species’ ranges). Research should focus on increasing
42 42 42 42 42 42 42 42 42 42 42 42

the understanding of cross-scale interactions.

42 42 42 42

More opportunities should be created to integrate research on road ecology into long-term
42 42 42 42 42 42 42 42 42 42 42 42 42

ecological studies by using long-term ecological research sites and considering the need for
42 42 42 42 42 42 42 42 42 42 42 42 42

new ones. 42

More attention should be devoted to predicting, planning, monitoring, and assessing the
42 42 42 42 42 42 42 42 42 42 42 42

cumulative impacts of roads. In some cases, the appropriate spatial scale for the assessment
42 42 42 42 42 42 42 42 42 42 42 42 42 42

will cross state boundaries, and especially in those cases, collaboration and cooperation
42 42 42 42 42 42 42 42 42 42 42 42

among state agencies would be helpful.

42 42 42 42 42

Environmental concerns should be integrated into transportation planning early in the

42 42 42 42 42 42 42 42 42 42 42

planning process, and larger spatial scales and longer time horizons should be considered.
42 42 42 42 42 42 42 42 42 42 42 42 42

Adding these elements would help to streamline the planning process. Metropolitan planning
42 42 42 42 42 42 42 42 42 42 42 42

organizations and state departments of transportation should conduct first-level screenings for
42 42 42 42 42 42 42 42 42 42

potential environmental effects before the development of a transportation improvement

42 42 42 42 42 42 42 42 42 42 42

plan. 42

19