Pakistan Railways outsources five passenger trains in Rs10.75 billion deal

Pakistan Railways has awarded the commercial management of five passenger trains to private-sector operators under public-private partnership agreements valued at around Rs10.75 billion.

According to a news report, the trains covered by the agreements are Awam Express, Millat Express, Karakoram Express, Mianwali Passenger and Narowal Passenger.

Private firms will manage the trains’ commercial operations, while Pakistan Railways will continue providing railway services to passengers.

Railway authorities said the five trains had previously generated a combined revenue of around Rs8 billion. The new arrangements are expected to increase receipts by about Rs2.75 billion to nearly Rs10.75 billion.

Officials described the agreements as Pakistan Railways’ largest outsourcing initiative to date. The outsourcing forms part of the department’s broader strategy to increase revenue, reduce its operational burden and expand private-sector participation in passenger and freight services.

Federal Minister for Railways Muhammad Hanif Abbasi said the use of new business models was important for improving the financial position of Pakistan Railways.

He said the department had also recorded encouraging results from outsourcing freight train operations. Freight services awarded to private operators are expected to generate more than Rs10 billion during the next fiscal year.

The minister said Pakistan Railways was working towards exceeding Rs100 billion in annual revenue for the first time since its establishment.