Lahore: Railways Minister Muhammad Hanif Abbasi said on Monday that Pakistan Railways had achieved a historic financial turnaround by earning Rs115 billion and posting its first profit in the institution’s 78-year history, attributing the achievement to improved governance, better utilization of rolling stock and reforms in freight and passenger operations.
Addressing a press conference here, the minister said that Pakistan Railways had earned a record Rs41 billion from freight operations, while the outsourcing of five passenger trains to the private sector had generated Rs3 billion in revenue. Encouraged by the results, the government planned to privatize additional train services, he added. Hanif Abbasi said seven power plants of Pakistan Railways were being rehabilitated and would become operational by September 30, while 16 more power plants would be procured through the department’s own revenue. He said 80 power plants would be inducted into the railway system by March 23 next year to improve operational efficiency.
The minister said three new rakes for Awam Express had already arrived, while the refurbishment of Karakoram Express, Millat Express and other passenger trains would be completed by June 2027 to provide improved travel facilities. The minister, highlighting infrastructure development, said the up-gradation of Main Line-1 (ML-1), Main Line-2 (ML-2) and Main Line-3 (ML-3) was essential for the future of Pakistan Railways. He added that discussions with the Asian Development Bank on ML-1 were progressing and the project would soon be inaugurated by the Prime Minister.
The completion of ML-1 would reduce travel time between Rohri and Karachi by about five hours, he added. Hanif Abbasi said ML-2 would be developed through a public-private partnership model. He also announced that eight new branch railway lines would be constructed across the provinces for the first time to extend rail connectivity to rural areas. The minister said the Baluchistan government had provided funds for the proposed People’s Train project, while agreements on two railway routes in Sindh would be signed shortly.
He said Rohri Junction would be reconstructed on modern lines, while state-of-the-art guard rooms would be established at Khanewal, Kotri, Rohri, Lahore and Peshawar after the successful completion of a modern guard room and rest area in Rawalpindi. Referring to staff welfare, the minister said Pakistan Railways had cleared GP Fund payments amounting to Rs500 million. He added that old and unsafe railway residential quarters would be replaced. He also said railway schools were providing quality education, while railway hospitals would be outsourced under a public-private partnership model to ensure free medical treatment for nearly 2.5 million railway employees and their families.
The minister said Pakistan Railways had also accelerated its digital transformation programme, with the first phase already completed and the second phase expected to conclude by December 31. Hanif Abbasi said the department had set an ambitious freight revenue target of Rs65 billion and passenger revenue target of Rs60 billion for the next fiscal year. To a question, the minister said that railway accidents had declined compared to last year due to improved operational management.
He rejected allegations of favouritism in awarding contracts, saying all contracts were awarded through transparent open auctions. He said the auction of railway land at Badami Bagh, which had been challenged in courts, generated around Rs450 million instead of the earlier estimated Rs52 million, demonstrating the transparency and effectiveness of the auction process.
The minister also said he had voluntarily stopped using the ministerial saloon coach except on one occasion, despite it having been routinely used in the past. He further maintained that he had not issued a single complimentary railway ticket even to any employee working at his residence, underscoring his commitment to transparency and financial discipline in the department. ‘No favourite has been given any contract during my tenure. We will protect every single rupee of Pakistan Railways,’ he added.