Losing steam: Pakistan Railways outsources four trains

ISLAMABAD: The ailing Pakistan Railways (PR), long plagued by inefficiency and mounting losses, has outsourced four trains and begun the process for 11 more, officials told Prime Minister Shehbaz Sharif on Saturday, a move expected to bring in an additional Rs8.5 billion as the cash-strapped state enterprise fights to stay afloat.

At a high-level review meeting chaired by the prime minister, Pakistan Railways officials said the organisation was rapidly moving towards public-private partnerships across its operations, covering cargo services, hospitals, schools and rail-linked dry ports. They described the shift as a key part of the government’s effort to curb losses and revive the decades-old network.

They said 40 luggage and brake vans had been outsourced, expected to fetch Rs820 million, while two cargo express trains were next in line, with projected revenue of Rs6.3 billion.

Hospitals in Lahore, Karachi, Multan, Peshawar, Quetta and Sukkur – historically run directly by Pakistan Railways – are also set to be handed over to private operators, officials said, along with dozens of schools, colleges and rest houses.

The dry ports in Lahore, Islamabad and Azakhel are undergoing a similar transition, the meeting was told.

PM Shehbaz inaugurates upgraded waiting areas, lounges at Karachi Cantt Railway Station

Alongside these changes, they added, the railways have shifted 155 stations to solar energy, while three long-inactive subsidiaries – Railway Constructions Pakistan Ltd, Pakistan Railway Freight Transportation Company and Pakistan Railway Advisory & Consultancy Services – have been formally shut down.

Officials also briefed the prime minister on major regional connectivity projects. The long-discussed Islamabad-Tehran-Istanbul freight service is “ready for launch”, while groundwork has begun on the ambitious Kazakhstan-Uzbekistan-Afghanistan-Pakistan rail corridor.

A plan is being finalised for upgrading the ML-1 Karachi-Kotri section and the ML-3 line. Work with the Sindh government on the long-pending Thar rail connectivity project – politically sensitive and commercially significant – is also underway.

The prime minister, calling the rail network “the backbone of the country’s economy and communication system,” praised the pace of reforms but pressed for “international-standard” legal and economic expertise, especially for cross-border projects.

He directed that the public-private partnership model be extended to railway land and property, an area long marred by disputes and underutilisation.

The meeting was also informed that the railways’ digital transformation is gathering pace. Seven portals under the ‘Rabta’ project have gone live, 56 trains have been integrated into the system, and 54 stations have been digitised. Free Wi-Fi is available at major stations and will be expanded to 48 more by December 31, 2025.

A freight online booking system has been introduced, while a pilot digital weighing bridge is operational at Karachi City station. The facility will later be rolled out to Pipri, Karachi Cantonment, Port Qasim, Lahore and Rawalpindi. In Rawalpindi, 148 AI-enabled surveillance cameras have been installed as part of enhanced security measures.

ATMs from various banks are being installed at stations, while cleanliness services have been outsourced. New waiting areas and information desks have been set up to improve passenger facilities, and food quality checks have been handed to provincial food authorities.

Federal Minister for Railways Hanif Abbasi, Minister for Economic Affairs Ahad Cheema and senior officials attended the meeting. The prime minister lauded Abbasi and his team for “notable progress” in reviving and upgrading Pakistan Railways.

Copyright Business Recorder, 2025