EDITORIAL: Prime Minister Shehbaz Sharif’s latest instructions to modernise Pakistan Railways and unlock the commercial potential of its land are welcome, particularly for an entity that has suffered decades of neglect, financial weakness and inadequate investment. The proposed use of railway property to help finance the 1,726-kilometre Main Line-1 upgrade could provide a much-needed source of funding. Yet the exercise also raises an important question about how the country intends to revive one of its most valuable public assets, and whether commercial development of railway land represents the best use of property that could also serve the network’s future operational needs.
Pakistan Railways has rarely received the sustained policy attention its economic importance warrants. Successive governments have allowed road transport to assume an increasingly dominant role while railway infrastructure, freight capacity and operational efficiency have struggled to keep pace. This is particularly unfortunate in a developing economy where rail can offer substantial cost advantages for moving large volumes of goods over long distances. For passengers, too, affordable and dependable rail services can provide an essential public service, especially for lower-income households.
India offers a useful example of what sustained investment and policy attention can achieve. Its extensive railway network carries enormous volumes of passengers and freight, demonstrating the importance of rail transport in a populous country with substantial income disparities. Pakistan’s circumstances differ, but the underlying economic logic is similar. A functioning railway network can reduce transport costs, improve connectivity and ease pressure on roads. The country should therefore be treating railway development as a central component of economic policy rather than an occasional rehabilitation exercise.
The freight opportunity is especially significant. Pakistan’s principal seaports are in the south, while much of its industrial and commercial activity extends northwards. Imports must reach production and consumption centres, while export cargo must travel in the opposite direction. This creates a natural market for reliable, high-capacity freight services along the Karachi-Peshawar corridor. Greater movement of containers and bulk commodities by rail could reduce dependence on long-distance road haulage, improve logistics efficiency and strengthen the commercial viability of Pakistan Railways. ML-1 must be developed with this opportunity firmly in view, including adequate freight capacity, terminals and connections to ports and industrial centres.
The renewed attention to railway land is also overdue. Encroachments and weak asset management have deprived the organisation of effective control over valuable property, while successive administrations have failed to establish the transparency and discipline such assets require. Efforts to identify and recover encroached land deserve support, of course. However, a proper inventory, clear ownership records and a transparent assessment of each property’s present and future utility should precede decisions about commercial exploitation.
The constitutional and legal status of railway land also deserves careful examination. Land held or used by Pakistan Railways may have different ownership, acquisition and transfer histories, including arrangements involving provincial governments. Any financing model must establish clear title and the relevant legal rights before property is pledged, leased or developed. Equally important, land needed for future tracks, freight yards, terminals, stations and network expansion should be protected. Commercial returns from railway property must be weighed against its long-term transport value.
Ultimately, corporate-style reform must extend to operations, maintenance, financial accountability, freight marketing and service reliability. Borrowing against assets can help finance infrastructure, but the resulting obligations require credible revenue projections and careful risk management. The government should publish the financing framework, assess commercial viability independently and establish measurable milestones for implementation.
Pakistan Railways has spent far too long being treated as an expensive inheritance rather than a productive national asset. The prime minister’s initiative offers an opportunity to change that approach. The real achievement would be a railway that earns its keep by moving considerably more people and goods, with its land serving that larger purpose.
Copyright Business Recorder, 2026