Pakistan Railways posts record Rs115bn revenue in FY26, up 24%

Pakistan Railways recorded its highest-ever annual revenue of Rs115.157 billion in fiscal year 2025-26, a 24% increase over the previous year, Minister for Railways Hanif Abbasi told the federal cabinet in a recent briefing.

Prime Minister Shehbaz Sharif, expressing satisfaction over the financial turnaround, asked the minister to share details of the performance with the cabinet. Abbasi said the results reflected a strategy built around financial sustainability, stronger governance, public-private partnerships, and the digitalisation of railway operations, which together improved institutional governance, operational efficiency, commercial viability and service delivery.

According to figures presented to the cabinet, revenue rose from Rs80,732 million in FY24 to Rs92,728 million in FY25, and further to Rs115,157 million in FY26 — an increase of Rs22,429 million, or 24.19%, over the previous year, and a cumulative rise of Rs34,425 million, or 42.64%, over two years.

The growth was spread across all major revenue streams. Freight earnings stood at Rs40,783 million and passenger earnings at Rs50,590 million, while sundry earnings rose to Rs16,401 million. Revenue from property and land more than doubled, climbing from Rs5,022 million to Rs11,956 million, driven by better commercial use of railway assets.

Abbasi also highlighted a sharp improvement in financial efficiency, with the organisation's cumulative operating surplus rising from 1% in FY24 to 4% in FY25 and then to 15% in FY26, which he attributed to improved cost management and stronger financial discipline.

The cabinet commended the railways minister and his team for introducing reforms and management practices, under the Prime Minister's supervision, that delivered the organisation's highest-ever revenue.

Looking ahead, Pakistan Railways said it would continue pursuing infrastructure modernisation, strengthen regional connectivity, and improve passenger and freight services, alongside accelerating digital transformation. 

The minister said implementation of key projects — ML-1, ML-3, and Thar coal connectivity — remains critical to the railway's sustained growth, in line with the vision set out by the Prime Minister and the federal cabinet for its contribution to economic growth, trade facilitation, and regional integration.