ISLAMABAD: Pakistan Railways (PR), burdened for decades by mismanagement and financial deficits, has begun outsourcing significant segments of its operations, officials told Prime Minister Shehbaz Sharif on Saturday. The restructuring drive—centered on public-private partnerships—is expected to generate an additional Rs8.5 billion as the struggling national carrier seeks to stabilise its finances.
During a high-level review meeting, officials said four passenger trains had already been outsourced, with the process underway for 11 more. The shift, they noted, forms part of a broader strategy to modernise operations, reduce losses and improve service delivery. Alongside trains, 40 luggage and brake vans have also been handed to private operators, projected to bring in Rs820 million. Two cargo express trains will follow, with expected earnings of Rs6.3 billion.
The privatisation model is also being extended to hospitals historically operated by PR in Lahore, Karachi, Multan, Peshawar, Quetta and Sukkur. Dozens of schools, colleges, rest houses and three rail-linked dry ports—Lahore, Islamabad and Azakhel—are being transitioned to private management as well.
At the meeting, officials highlighted energy reforms, including shifting 155 railway stations to solar power. Three long-defunct subsidiaries—Railway Constructions Pakistan Ltd, Pakistan Railway Freight Transportation Company, and Pakistan Railway Advisory & Consultancy Services—have been dissolved.
Updates were also shared on cross-border connectivity initiatives. The Islamabad-Tehran-Istanbul freight service is “ready for launch,” while groundwork has begun on the Kazakhstan-Uzbekistan-Afghanistan-Pakistan rail corridor. Plans are progressing to upgrade the ML-1 Karachi-Kotri section and the ML-3 line, while work continues with Sindh authorities on the strategically crucial Thar rail link.
The prime minister praised the reform momentum, calling railways “the backbone of the national economy,” but urged the inclusion of top-tier legal and financial experts for international projects. He also ordered expansion of the public-private partnership model to railway land and real estate.
Officials reported accelerated digital transformation efforts under the “Rabta” initiative, with seven online portals active, 56 trains linked to the system, and 54 stations digitised. Free Wi-Fi will extend to 48 additional stations by December 2025. An online freight booking system, digital weighing bridges and AI-enabled surveillance in Rawalpindi are also being rolled out. Cleanliness services, food safety checks and ATM installations are being upgraded nationwide.
Federal Minister for Railways Hanif Abbasi and other senior officials attended the meeting, receiving the prime minister’s commendation for “notable progress” in reviving Pakistan Railways.
