Pakistan Railways revenue rises 20% to Rs115 billion in FY26

Pakistan Railways posted a 20% increase in revenue during FY2025-26, with earnings rising to Rs115 billion from Rs96 billion a year earlier, Railways Minister Muhammad Hanif Abbasi said. 

Addressing a press briefing, Abbasi said he had expected revenue of Rs120 billion, but described the performance as encouraging given regional and operational challenges during the year.

Freight operations generated Rs41 billion in FY2025-26, compared with Rs36 billion in the previous fiscal year, reflecting an increase of nearly 14%.

Passenger services remained the largest revenue contributor, generating Rs51 billion during the year.

The minister said Pakistan Railways has set a freight revenue target of Rs65 billion for FY2026-27, higher than the passenger earnings target of Rs60 billion.

He said achieving the freight target would depend on bringing more than 40 General Utility series locomotives into freight operations.

Abbasi said freight volumes remained below expectations in the last fiscal year due to disruptions caused by the Iran-US conflict in the Gulf region. Despite this, freight revenue increased.

He said Pakistan Railways will begin transporting automobiles and edible oil by September.

The minister said the operational cost ratio declined to 84.7% in FY2025-26 from 96% a year earlier, indicating improved financial management.

On passenger services, Abbasi said Pakistan Railways is overhauling coaches, locomotives and power vans.

He said the department’s digitisation programme is expected to be completed by the end of this year and will cover ticketing, cargo management and customer services.

On major infrastructure projects, Abbasi said Pakistan Railways hopes to hold the groundbreaking of ML-1 in September, subject to Asian Development Bank financing procedures.

He said completion of the planned 480-kilometre section under ML-1 would reduce Lahore-Karachi travel time by five to six hours.

The minister said ML-3 is important for expanding trade with Iran and that Pakistan Railways will soon invite tenders for the project.

ML-2 will be developed under a public-private partnership model to attract private investment.

Abbasi said special economic corridors will also be developed along the upgraded railway network to support industrial activity and logistics.

He added that Pakistan Railways is working with provincial governments to revive branch lines.

In Punjab, eight branch lines will be rehabilitated in the first phase to improve connectivity for remote and rural areas.