ISLAMABAD:
Pakistan Railways has declared that it will continue to pursue modernisation of its infrastructure, strengthen regional connectivity, improve passenger and freight services, and accelerate digital transformation. Also, the implementation of key railway projects – ML-1, ML-3 and Thar coal connectivity – is critical for sustained growth of the state-owned rail company.
Briefing the cabinet in a recent meeting, Minister for Railways Hanif Abbasi expressed the firm resolve to build upon the progress achieved so far and further enhance the contribution of Pakistan Railways to the national economic growth, trade facilitation and regional integration, as envisioned by Prime Minister Shehbaz Sharif and the federal cabinet.
Pakistan Railways seems to be coming out of hot water as it recorded the highest-ever annual revenue of Rs115.157 billion in financial year 2025-26, up 24% compared to the previous year, driven by strong growth across freight, passenger and commercial operations. In the past two years, the revenue went up 42%.
Expressing satisfaction with the remarkable financial turnaround achieved by Pakistan Railways, PM Sharif called on the minister to share details with the cabinet.
The railways minister apprised the forum that the turnaround had been achieved through the implementation of a strategy focused on financial sustainability, governance and growth, public-private partnerships and digitalisation of processes and operations. He noted that those reforms strengthened institutional governance, improved operational efficiency, restored commercial viability and modernised service delivery.
The minister said that Pakistan Railways achieved its highest-ever revenue of Rs115,157 million in FY26 compared to Rs92,728 million in FY25 and Rs80,732 million in FY24. The total revenue increased by Rs22,429 million (24.19%) over the previous financial year and by Rs34,425 million (42.64%) in the last two years, reflecting sustained growth in the organisation’s financial performance.
The cabinet was told that the revenue spike was broad-based covering all major revenue streams. Freight earnings rose to Rs40,783 million, passenger earnings reached Rs50,590 million, while sundry earnings grew to Rs16,401 million. The revenue from property and land surged from Rs5,022 million to Rs11,956 million, fuelled by improved commercial utilisation of railway assets and enhanced cash inflows.
The minister mentioned that Pakistan Railways achieved substantial improvements in financial efficiency by increasing the cumulative operating surplus from 1% in FY24 to 4% in FY25 and further to 15% in FY26. He stated that the improvement reflected better cost management, enhanced operational efficiency and strengthened financial sustainability.
The cabinet appreciated the efforts of the minister for railways and his team to introduce effective reforms and adopt sound management practices under the guidance and supervision of the PM, which resulted in the highest-ever revenue for Pakistan Railways.
