LAHORE:
Federal Minister for Railways Muhammad Hanif Abbasi has said that Pakistan Railways is likely to achieve a revenue target of Rs100 billion in fiscal year 2025-26, as the organisation expects to generate Rs50 billion in revenue during the first six months of FY26. He said the performance reflects a sharp turnaround, driven by reforms in safety, service quality, digitisation and asset management.
He said the organisation, which remained under financial stress for years, is now moving towards financial stability due to focused administrative and operational measures.
“Railways earned more than Rs93 billion in revenue during 2025, showing a strong recovery compared to previous years,” the minister said. He added that revenue of around Rs50 billion is expected in the first half of FY26 alone, indicating that the organisation is on track to meet and possibly exceed its annual target.
According to Abbasi, the revenue target set for Pakistan Railways in FY26 was around Rs100 billion, which now appears achievable given the current performance trend. He recalled that in FY25, Pakistan Railways’ earnings remained below this level, but the gap has narrowed significantly due to improved train operations, better management and higher passenger confidence.
Abbasi attributed the improvement to a comprehensive reform agenda, particularly in the area of safety. He said the safety department has been upgraded into a full-fledged directorate, a move that has produced visible results. Following the creation of the directorate, the accident rate has declined from 0.09% to 0.04%, while no serious accidents have been reported since the change. He said passenger trust cannot be restored without ensuring safety, which remains a top priority of the ministry.
The year 2025 was not a good one for railways in terms of passenger safety, as derailments of passenger as well as freight trains became a routine matter, highlighting that the dilapidated railway infrastructure requires a major overhaul.
The minister said 2025 also marked an important milestone, as Rawalpindi was converted into the country’s first smart railway station, equipped with modern cameras and an advanced security system. He added that other major stations will be upgraded on similar lines in 2026. In addition, a decision has been taken to install cameras inside trains to further enhance passenger safety and monitoring.
On service improvement, Abbasi said that railways upgraded eight train rakes in just eight months, including the Shalimar, Pak Business, Lasani and Faiz Ahmed Faiz trains. He said the upgrades have improved passenger comfort and helped attract more travellers back to railways. According to Abbasi, stations in Lahore, Karachi, Rawalpindi and Faisalabad have also been upgraded, while all trains are planned to be fully upgraded by December 2026.
The minister said digitisation has played a key role in improving transparency and efficiency. All work of the ministry has been shifted to e-filing, while major stations are now equipped with ATM, DVM and POS machines to facilitate passengers. He added that staff attendance has also been fully computerised, making physical presence mandatory for salary disbursement, which has improved discipline within the department.
He further said encroachments on railway land have long caused financial losses, but the issue is now being addressed seriously. During 2025 alone, 394 acres of railway land were recovered from encroachers. The minister said the government aims to retrieve all railway land from illegal occupation by December 2026, which will also create new opportunities for commercial use.
Outsourcing has also contributed to improved management. Three railway schools have already been outsourced, with the remaining schools to follow within six months. Eleven more trains are also planned to be outsourced, while cleaning services at major stations, including Lahore, Khanewal, Multan, Karachi and Rawalpindi, have been handed over to private firms. As a result, he said cleanliness is now ensured even late at night.
