Railways achieves Rs10.75bn outsourcing deal for five trains
LAHORE: The Pakistan Railways (PR) has achieved a major milestone in its reform and revenue-generation efforts by awarding the commercial management of five passenger trains to private-sector partners under a Public-Private Partnership (PPP) model in a deal worth approximately Rs10.75 billion which officials have described as the most successful outsourcing initiative in the history of the national railway system.
According to railway authorities, the outsourcing agreement represents a significant increase in revenue compared to the earnings generated by the same trains in previous years. Officials said the five trains had collectively generated around Rs 8 billion in revenue before being offered for outsourcing, while the new agreements are expected to bring in nearly Rs10.75 billion, reflecting a substantial improvement in financial returns for Pakistan Railways.
Under the arrangement, Awam Express, Millat Express, and Karakoram Express will be operated through public-private partnerships, allowing private firms to manage their commercial operations while maintaining railway services for passengers. In addition, Mianwali Passenger and Narowal Passenger trains have also been handed over to private partners under similar arrangements.
Railway officials believe the move will not only increase revenue but also improve the quality of services, operational efficiency, passenger facilities, and overall travel experience. The outsourcing model is part of a broader strategy aimed at modernizing Pakistan Railways, reducing operational burdens, and encouraging private-sector participation in the country’s transport sector.
Federal Minister for Railways, Muhammad Hanif Abbasi, congratulated the Chief Commercial Manager (CCM) and the entire commercial team for successfully concluding the outsourcing agreements. He praised their efforts in securing what he termed a landmark achievement for Pakistan Railways and emphasized the importance of innovative business models in strengthening the financial position of the organization.
The minister highlighted that Railways had already achieved encouraging results through the outsourcing of freight train operations. He noted that freight services awarded to private operators on favourable commercial terms are expected to generate more than Rs 10 billion in revenue during the next fiscal year, further contributing to the organization’s financial stability and growth.
Abbasi expressed confidence that Pakistan Railways is on course to achieve a historic financial milestone by surpassing Rs 100 billion in annual revenue for the first time since its establishment. He said the government and Railways administration are working tirelessly to implement reforms, improve infrastructure, enhance operational performance, and expand opportunities for public-private collaboration.
The minister added that ongoing modernization efforts and business-friendly policies are beginning to yield positive results, and he assured passengers and stakeholders that more improvements and positive developments can be expected in the near future. He reiterated the government’s commitment to transforming Pakistan Railways into a financially sustainable, customer-oriented, and modern transportation network capable of meeting the growing travel and freight needs of the country.
Officials view the latest outsourcing agreements as a significant step toward achieving these objectives and strengthening the long-term financial viability of Pakistan Railways while ensuring better services for millions of passengers across the country.
Copyright Business Recorder, 2026