Pakistan considers shifting imported edible oil transport from roads to rail to improve logistics

Shipping containers are seen stacked on a ship at a sea port in Karachi on April 6, 2023. (AFP/ file)
Short Url
Updated 17 December 2025
Follow

Pakistan considers shifting imported edible oil transport from roads to rail to improve logistics

  • The plan includes building a railway station and modern storage facilities at Port Qasim in Karachi
  • Officials say about 100,000 tons of imported edible oil a year could move by rail to major cities

ISLAMABAD: Pakistan is considering transporting imported edible oil from Port Qasim by rail as part of broader logistics reforms aimed at cutting costs, easing traffic congestion in Karachi and improving environmental outcomes, officials said on Wednesday.

The proposal was discussed during a meeting between a delegation from the Ministry of Railways and Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry, who said the government was examining plans to establish a railway station and modern storage facilities at the port.

Pakistan currently relies heavily on road transport for moving imported edible oil inland, contributing to congestion, higher fuel consumption and logistics bottlenecks in Karachi. Shifting bulk cargo to rail is part of wider efforts to improve port-linked supply chains and reduce transport inefficiencies.

“Under this project, the transportation of edible oil through railways will help save both time and cost,” Chaudhry said, according to an official statement, adding that the initiative would significantly reduce traffic pressure in Karachi.

Chaudhry said trains carrying edible oil would operate from Port Qasim and Keamari to major consumption and industrial centers, including Multan, Lahore, Faisalabad, Hattar and Peshawar.

He said the project envisages shifting around 100,000 tons of edible oil annually from road to rail, which would also support environmental goals through lower fuel use and reduced transport emissions.

“The railway project will support port-related logistics reforms and bring environmental benefits by promoting efficient fuel use and lowering transportation costs,” Chaudhry said.

The statement said the plan also aligned with broader government efforts to modernize freight transport infrastructure and improve coordination between ports and the railway network.


Pakistan stocks recover as oil supply fears ease after Islamabad seeks Red Sea route— analyst

Updated 05 March 2026
Follow

Pakistan stocks recover as oil supply fears ease after Islamabad seeks Red Sea route— analyst

  • Pakistan has sought Saudi help to secure oil supplies via Red Sea port after Iran’s closure of Strait if Hormuz
  • Analyst says higher crude oil prices, expectations of IMF releasing next loan tranche also triggered bullish activity

ISLAMABAD: Pakistani stocks marked a sharp recovery when trading closed on Thursday, as institutional activity increased following Islamabad’s move to seek crude oil supplies through the Red Sea port eased oil supply fears, a financial analyst said. 

Pakistani stocks have recorded a sharp decline this week, with the benchmark KSE-100 index recording its largest-ever single-day decline on Monday when it plunged 16,089 points. Escalating conflict in the Middle East triggered panic selling at the Pakistani bourse, forcing a temporary trading halt on Monday. 

The KSE-100 index, however, gained 3.49 percent or 5,433.46 points to close at 161,210.67 when trading ended on Thursday, up from the previous close of 155,777.21 points, according to Pakistan Stock Exchange’s (PSX) data.

Pakistan’s Petroleum Minister Ali Pervaiz Malik met Saudi Ambassador Nawaf bin Said Al-Malki on Wednesday to discuss Iran’s closure of the key Strait of Hormuz, which has threatened Pakistan’s energy supply. Roughly 20 percent of the global oil and gas supply passes through the route. Saudi Arabia indicated it could facilitate shipments through the Red Sea port of Yanbu, offering an alternative route if Gulf shipping lanes remain disrupted, the petroleum ministry said on Wednesday. 

“Stocks staged a sharp recovery at PSX amid institutional activity on easing fuel supply fears after KSA [Kingdom of Saudi Arabia] commits oil supplies through the Red Sea port,” Ahsan Mehanti, chief executive officer at Arif Habib Commodities, told Arab News.

He said higher global crude oil prices and expectations of the International Monetary Fund releasing its next tranche of the $7 billion loan for Pakistan also helped bullish activity at the PSX.

An IMF mission was in Pakistan to hold talks on the third review of a $7 billion Extended Fund Facility multi-year program, and for the second review of the $1.4 billion Resilience and Sustainability Facility this week.

However, the delegation left for Türkiye amid tensions in the Gulf. Pakistani officials have said talks are likely to continue virtually in the coming days. 

Pakistani brokerage Topline Securities said in its daily market review report that strong institutional buying “turned the tide” on Thursday after the market’s recent overreaction to regional issues.

The report added that Hub Power Company (HUBC), Oil & Gas Development Company (OGDC), Fauji Fertilizer Company (FFC), Engro Corporation (ENGROH), and Meezan Bank Limited (MEBL) collectively contributed 2,197 points to the KSE benchmark’s gain.

Topline Securities said 723 million shares were traded on Thursday, with K-Electric Limited (KEL) stealing the spotlight as more than 1.17 billion shares changed hands.

Pakistani investors are closely monitoring developments in the Gulf, particularly around energy routes and further retaliatory actions, as the conflict’s trajectory remains uncertain.