Pakistan Railways revenue rises 20pc to Rs115bn

ISLAMABAD: Pakistan Railways recorded a 20% increase in earnings in fiscal year 2025-26, with revenue rising to Rs115 billion from Rs96 billion a year earlier, as the government set a higher target for freight operations to strengthen the finances of the state-run organisation.

Addressing a press briefing on Monday, Railways Minister Muhammad Hanif Abbasi said he had expected revenue to reach Rs120 billion, but described the year’s overall performance as encouraging in view of the regional and operational difficulties faced during the period.

According to the minister, freight operations remained a major contributor to growth, generating Rs41 billion compared to Rs36 billion in the previous fiscal year, an increase of nearly 14%. Passenger services remained the largest source of income, bringing in Rs51 billion.

Freight target raised for current fiscal year

Abbasi said Pakistan Railways had set a freight revenue target of Rs65 billion for FY2026-27, higher than the passenger segment target of Rs60 billion. He said meeting that goal would depend on bringing more than 40 General Utility series locomotives into freight service.

The minister said freight volumes stayed below expectations in the last fiscal year because of disruptions linked to the Iran-US conflict in the Gulf region. Even so, he said, Pakistan Railways was able to raise freight earnings. He added that the railway would start transporting automobiles and edible oil by September.

Abbasi said the operational cost ratio improved to 84.7% in FY2025-26 from 96% in the preceding year, which he said reflected better financial discipline and more efficient use of resources.

Upgrades planned for services and infrastructure

On passenger services, the minister said the department was carrying out overhauls of coaches, locomotives and power vans. He added that the digitisation programme was expected to be completed by the end of this year, with the initiative aimed at improving ticketing, cargo management and overall customer service.

Speaking about the Main Line projects, Abbasi said Pakistan Railways was aiming to hold the groundbreaking for ML-1 in September, subject to financing procedures of the Asian Development Bank. He said completion of the planned 480-kilometre section under the ML-1 project would reduce Lahore-Karachi travel time by five to six hours.

The minister said work on ML-3 was important for expanding trade with Iran, adding that Pakistan Railways would soon invite tenders for the project to support cross-border trade and passenger movement. He further said ML-2 would be developed under a public-private partnership model to draw private investment.

Abbasi also said special economic corridors would be developed along the upgraded rail network to encourage industrial activity and improve logistics infrastructure. In addition, he said Pakistan Railways, working with provincial governments, was reviving neglected branch lines. In Punjab, he said, eight branch lines would be rehabilitated in the first phase to improve connectivity in remote and rural areas and ease access to economic opportunities and public services.