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Pakistan Railways’ Rs. 1 Trillion Revenue Target: Goal, Reported Results and Modernization Plans

The Rs. 1 trillion figure was Pakistan Railways’ target for June 2026, not a reported achievement. APP later reported Rs. 115 billion in FY2025–26 as modernization projects moved through planning, financing and procurement.
From TheFinanceBase Team3 min to read
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Pakistan Railways set a target of Rs. 1 trillion in revenue by June 2026, but that was a goal—not an announced achievement. A later report by the Associated Press of Pakistan (APP), quoting Railways Minister Muhammad Hanif Abbasi, put revenue for fiscal year 2025–26 at Rs. 115 billion, up 24.2 percent. The modernization push includes major track upgrades, digital systems and passenger-service plans, but key infrastructure work remains in financing and procurement stages.

What was Pakistan Railways’ Rs. 1 trillion revenue target?

On January 6, 2026, Federal Minister for Railways Muhammad Hanif Abbasi said Pakistan Railways had set a target of Rs. 1 trillion in revenue by June 2026, according to a Press Information Department release. The figure was a minister-announced target, not a reported result.

Did Pakistan Railways achieve the target?

Not according to the later revenue figure cited in the available reporting. APP reported on July 23, 2026, that Abbasi said railway revenue for FY2025–26 was Rs. 115 billion, a 24.2 percent increase. This is a minister-reported figure carried by APP, not an audited financial statement in the cited source. The report also quoted Abbasi as saying the operating ratio improved from 96 percent to 84 percent; that measure describes operating expenses in relation to revenue, rather than the revenue target itself. APP’s report

A separate number in the Finance Ministry’s FY2025–26 medium-term performance budget is Rs. 70 billion for the Railways Services planned budget. That is a budget allocation, not revenue earned, and should not be compared with the Rs. 115 billion as if the two figures measured the same thing. Finance Ministry budget document

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What is Pakistan Railways doing to modernize?

The government’s agenda combines financial and operational reforms with infrastructure investment and passenger-facing changes. In June 2026, Prime Minister Shehbaz Sharif approved a strategic roadmap focused on service quality, network capacity and financial sustainability. Measures listed include governance improvements, digitization, network expansion and regional connections, private-sector participation through public-private partnerships (PPPs), modern coaches and improved passenger facilities, and upgrades to ML-1, ML-2 and ML-3. The prime minister also directed that revenue generated from private investment on railway land be used to improve the railway system. Radio Pakistan’s roadmap report

Digital systems and station services

The government’s Railway Advanced Infrastructure Network (RAIN) release lists GPS tracking for trains and locomotives, smart stations, high-speed internet at selected stations, command-and-control centers in Lahore and divisional offices, and fiberization across 1,700 kilometres of ML-1. It says Phase I had been executed; it does not establish that every feature is available across the full network. RAIN project release

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In a separate January 2026 announcement, the railways minister said ticket booking was enabled through the Rabta App and described planned train upgrades including security cameras, Wi-Fi, hostesses and modern dining cars. Those are announced measures, not confirmation that each feature is operating on every train. Press Information Department release

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What is happening to the ML-1 railway project?

ML-1 is the 1,726-kilometre Karachi–Peshawar corridor. The Planning Ministry says it carries 76 percent of passenger traffic and 98 percent of freight traffic, despite infrastructure constraints. The ministry’s figures describe the corridor’s strategic importance; proposed upgrades are plans, not current operating performance. Planning Ministry project release

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Proposed capacity and travel-time changes

The government’s proposed ML-1 outcomes are substantial, but remain projections:

Measure Current or stated baseline Proposed outcome
Train capacity 34 train pairs 120 train pairs
Passenger speed Not stated in the Planning Ministry release Up to 160 km/h
Freight speed 30 km/h Up to 80 km/h
Karachi–Rohri journey time Eight hours About four and a half hours

The Planning Ministry also projected freight demand of around 21 million tonnes annually by 2035. These are government-stated forecasts and intended improvements, not evidence that the capacity, speeds or journey-time reductions have been delivered. Planning Ministry project release

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Financing, procurement and construction status

The Karachi–Rohri segment is estimated by the Planning Ministry to cost approximately US$2.5 billion. The Asian Development Bank is leading financing efforts, with the Asian Infrastructure Investment Bank, World Bank, Islamic Development Bank and European Investment Bank engaged as co-financing partners. The ministry said project-readiness financing had been secured and engineering work undertaken, while procurement and financing processes were advancing; it also said Pakistan was developing a financing path for the remaining corridor sections. Planning Ministry financing update

Pakistan Railways’ public-notices page listed an expression-of-interest notice dated September 18, 2026, and an early market-engagement notice dated August 18, 2026, for the Karachi–Rohri upgrade. These notices indicate procurement and market engagement, not that construction had started. Pakistan Railways public notices

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For Rohri–Multan, the Planning Ministry said financing options under consideration included public-sector development funds, foreign financing, PPPs, local commercial banks and domestic capital markets. A ministerial briefing estimated the section at more than Rs. 450 billion and called for an independent feasibility study. The same briefing attributed 399 derailments and 158 other accidents over the preceding ten years to deteriorated railway infrastructure; those counts are official briefing figures, not independently verified incident-level data. Press Information Department briefing

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