- Minister says move aims at modernizing services, saying 295 high-capacity freight wagons to be inducted by March next year
- Says freight booking to be shifted fully online starting next week
- Says Pakistan seeks Chinese support for $7bn ML-1 project under CPEC, noting ADB financing under consideration for Karachi–Rohri rail upgrade
ISLAMABAD: Pakistan Railways has decided to outsource the operation of passenger trains through an open auction in a bid to curb losses and modernize services, state media reported on Friday.
The decision comes as the railways, one of the country’s oldest and most extensive transport networks, continue to struggle with mounting financial losses. Passenger fares and freight tariffs have long failed to cover operating costs, forcing the government to explore new models of efficiency.
Pakistan is already pursuing privatization of loss-making state-owned enterprises (SOEs), including the national flag carrier, as part of commitments under a $7 billion International Monetary Fund (IMF) loan program secured last year.
According to Radio Pakistan, a meeting chaired by Railways Minister Hanif Abbasi in Lahore finalized plans to outsource passenger trains through an open auction. The meeting also decided to revise the annual revenue benchmark of trains to align with market realities.
In addition to outsourcing, the minister was informed that Pakistan Railways will induct 295 high-capacity freight wagons into the system by March next year to boost cargo operations. Freight booking is also set to be shifted entirely to a digital platform from next week, enhancing transparency and accessibility for customers.
The railway network, plagued by outdated infrastructure, has already outsourced parts of its operations in recent years but has stopped short of full privatization. To upgrade its backbone, Pakistan Railways has sought Chinese assistance under the multibillion-dollar China-Pakistan Economic Corridor (CPEC) framework, particularly for the $7 billion Main Line-1 (ML-1) project, along with new rolling stock and dualization of tracks.
Officials are also weighing Asian Development Bank financing for the Karachi–Rohri upgrade, a critical section of the southern corridor that handles a significant share of passenger and freight traffic.
