Railways generates record Rs115bn revenue: Abbasi

LAHORE: Federal Minister for Railways Hanif Abbasi claimed that Pakistan Railways has achieved its highest-ever annual revenue, generating Rs115 billion during the 2025–26 fiscal years. Addressing a press conference at the Pakistan Railways Headquarters here on Monday, the minister said the government is working tirelessly to transform Pakistan Railways into a profitable and modern public sector institution. Hanif Abbasi said Pakistan Railways had earned Rs 115 billion for the first time in its 78-year history. He attributed the achievement to improved governance, enhanced operational efficiency, and the dedication of railway officers and employees. Providing a breakdown of the revenue, the minister said passenger train operations generated Rs55 billion, freight services contributed Rs 41 billion, property and land management brought in Rs 12 billion, while commercial activities and scrap sales generated Rs 2 billion each. He added that freight revenue registered a growth of 27. 78 percent, while passenger revenue also increased significantly compared to the previous fiscal year. He highlighted the steady improvement in railway earnings over the past three years, stating that total revenue increased from Rs88 billion in 2023–24 to Rs 92 billion in 2024–25, before reaching the record Rs 115 billion in 2025–26. The minister said Pakistan Railways has set an ambitious target of earning Rs65 billion from freight operations and Rs60 billion from passenger services during the current fiscal year, expressing confidence that the goals would be achieved. Hanif Abbasi said the government remains committed to eliminating corruption and making Pakistan Railways a fast, reliable, and affordable mode of commercial transportation. He said reducing institutional losses and implementing digital transformation are among the ministry’s top priorities. He informed journalists that the first phase of the railway digitisation programme was successfully completed on June 30, while the second phase is scheduled for completion by December 31 in accordance with the Prime Minister’s directives. The minister stressed that all railway contracts are now being awarded strictly on merit through open auctions. Citing the example of the Badami Bagh auction, he said the railway earned Rs450 million instead of the expected Rs52 million due to the transparent bidding process. He also stated that he had voluntarily stopped using the ministerial saloon coach except on one occasion and had not issued even a single complimentary railway ticket to household staff. Highlighting operational reforms, Hanif Abbasi said locomotive maintenance had remained neglected for the past nine months and acknowledged a shortage of power plants. He said the issue would be resolved by September 30, adding that tenders had already been floated for the procurement of 16 power plants through railway-generated revenue, while 80 additional power plants are expected to join the railway fleet by March 23. He said locomotive overhauling is underway and data collection for additional power units is continuing. The minister said the outsourcing of five passenger trains had already generated Rs3 billion in revenue, and the government intends to outsource more trains under the public-private partnership model. He also announced that three new train rakes for the Awam Express have already arrived. Hanif Abbasi reiterated that the rehabilitation of Main Line-1 (ML-1), Main Line-2, and Main Line-3 is essential for the future of Pakistan Railways. He said discussions are underway with the Asian Development Bank regarding financing, while the Rohri Junction will be completely rebuilt. He added that Prime Minister Shehbaz Sharif would soon inaugurate the ML-1 project, which is expected to reduce travel time between Rohri and Karachi by approximately five hours. Public-private partnerships would also be encouraged in these development projects. The minister said Pakistan Railways continues to serve as a vital link connecting all four provinces. He announced that development projects are being launched across the country without discrimination, including the construction of eight branch railway lines. He said rail services would also be extended to rural areas, while the government of Balochistan has provided funding for the proposed People’s Train project. He further revealed that memorandums of understanding are expected to be signed soon for two additional railway routes in Sindh. Discussing employee welfare, Hanif Abbasi said the government had released Rs500 million towards the Railway General Provident Fund and noted that the federal government allocates Rs63 billion annually for pension payments, all of which are spent on employees. He said providing better facilities for railway workers remains a key priority. The minister also announced the establishment of state-of-the-art guard rest rooms in Rawalpindi, with similar facilities planned for Khanewal, Kotri, Rohri, Lahore, and Peshawar. Referring to the recent building collapse incident in Kahna, Hanif Abbasi said the railway administration would not wait for similar tragedies to occur before taking preventive measures. He announced plans to replace dilapidated railway residential quarters, improve educational standards in railway schools, and privatise railway hospitals to ensure better healthcare facilities for railway employees and their families. Senior railway officials, including Chief Executive Officer Hafeezullah, Additional General Manager (Mechanical) Muhammad Yousaf, Additional General Manager (Traffic) Sufyan Sarfraz Dogar, Additional General Manager (Infrastructure) Hammad Hassan Mirza, and other officials were also present. Copyright Business Recorder, 2026

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