Pakistan Railways targets $3.6 billion revenue amid track expansion, service upgrades

This file photograph, released by Pakistan Railways on August 28, 2022, shows the exterior of one of the passenger coaches Pakistan received from China in 2022. (Photo courtesy: Pakistan Railways/File)
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Updated 07 January 2026
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Pakistan Railways targets $3.6 billion revenue amid track expansion, service upgrades

  • Government plans new railway lines and modern trains with security cameras, Wi-Fi and dining cars
  • Revival of a robust railway system is seen as key as Pakistan pushes to become a regional trade hub

ISLAMABAD: Pakistan Railways has set a target of generating Rs 1 trillion ($3.6 billion) in revenue by June as the government expands railway tracks and upgrades passenger services with amenities such as Wi-Fi and modern dining cars, Federal Minister for Railways Hanif Abbasi said on Tuesday.

Pakistan Railways was once the backbone of long-distance travel and freight movement across the country, connecting major cities and ports soon after independence. However, decades of underinvestment, aging infrastructure and competition from road transport led to a steady decline in services and reliability.

As Pakistan seeks to position itself as a regional trade and transit hub, the government has renewed focus on rebuilding a robust rail network for both passengers and cargo.

“Pakistan Railways has set a target of achieving Rs 1 trillion in revenue by June 2026,” Abbasi said, according to an official statement. “Pakistan Railways will be transformed into a modern, safe and profitable organization,” he added.

The minister said work has already begun on digitization, outsourcing, construction of new railway tracks and improvement of passenger facilities.

He said the Asian Development Bank has approved a $2 billion loan for the construction of a 480-kilometer new railway track between Karachi and Rohri, a project expected to cut travel time by at least five hours.

Groundbreaking for the project is planned for July 2026, with completion expected within two and a half to three years.

Under the Reko Diq project, Abbasi said work is underway on a 900-kilometer railway track from Rohri to Nokundi, including construction of 500 kilometers of new track and upgrading of 400 kilometers of existing track.

The 87-kilometer Nokundi–Taftan line has also been included to strengthen rail connectivity with Iran.

The minister said a 54-kilometer People’s Train route is being launched in Balochistan at a cost of Rs 4 billion ($14.4 million), while eight regional routes will be developed in Punjab.

Provinces have also been offered the option to operate branch lines, with Punjab, Sindh and Balochistan allocating funds and consultations underway with Khyber Pakhtunkhwa.

Abbasi said Pakistan is also advancing rail connectivity with Kazakhstan, Uzbekistan and Iran and that the Islamabad–Tehran–Istanbul railway service will be launched after security clearance.

Passenger services are being upgraded alongside infrastructure expansion, he continued.

“Cleanliness and improvement work at Rawalpindi Railway Station has been completed, while three prime trains have already been upgraded, and more trains will be upgraded by June 30,” the minister said. “By December 31, all major trains will be upgraded, featuring security cameras, Wi-Fi, hostesses and modern dining cars.”

He added that Wi-Fi routers have been installed at railway stations, ticket booking has been enabled through the Rabta mobile application and a 1,700-kilometer fiber-optic network is being laid.

Karachi and Lahore railway stations are being upgraded for security, while progress is underway on a Rs 8.9 billion ($32 million) digital systems agreement with the Frontier Works Organization and a $85 million project with DP World at Pipri Yard.

Abbasi said 155 railway stations have been shifted to solar energy and Pakistan Railways recently recorded its highest-ever daily revenue of Rs 300 million ($1.1 million).

The minister also said a new Lahore–Rawalpindi track, backed by provincial funding, will cut travel time between the two cities to about two and a half hours once completed.


Pakistan imposes three-day curfew in Gilgit, Skardu cities after violent Khamenei protests

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Pakistan imposes three-day curfew in Gilgit, Skardu cities after violent Khamenei protests

  • At least 14 people were killed in the region where protesters burned UN offices, police station, school and a local charity
  • Gilgit-Baltistan government spokesman says the situation is under control, police chief urges the residents to stay indoors

ISLAMABAD: Authorities have deployed troops and imposed a three-day curfew in the northern Pakistani cities of Gilgit and Skardu, according to a notification issued Monday, after over a dozen people were killed in clashes over the killing of Iran’s Supreme Leader Ayatollah Ali Khamenei in US-Israeli strikes.

Pakistan’s northern Gilgit-Baltistan (GB) region, where the two cities are located, saw violent clashes on Sunday as protesters set fire to and vandalized several buildings, including United Nations (UN) regional offices, army-run school, software technology park and an Aga Khan Rural Support Programme office.

Clashes with law enforcement agencies caused the deaths of at least 14 people in the region, among them a soldier, GB Caretaker Information Minister Ghulam Abbas confirmed told Arab News. He said around 50 others were injured.

“In wake of prevailing precarious law-and-order situation... it is expected that the situation may deteriorate further in Gilgit-Baltistan, particularly in District Gilgit and Skardu,” Deputy Home Secretary Ghulam Hasan said in a notification on Monday.

“It is therefore requested that Pakistan Army troops may be deployed in District Gilgit and Skardu and curfew may be imposed for an initial period of three days (2nd, 3rd and 4th March) to prevent any untoward incident and danger to human life and property.”

Separately, UN spokesman Stephane Dujarric said on Monday that protesters became violent near the UN Military Observer Group in Pakistan (UNMOGIP) Field Station, which was vandalized.

“The safety and security of UN personnel and premises throughout the region remain our top priority, and we continue to closely monitor the situation,” Dujarric said.

Shabir Mir, a Gilgit-Baltistan government spokesman, said the situation was under control and that the curfew would remain in place until Wednesday as police chief Akbar Nasir Khan urged residents to stay indoors.

Anger has been rising in Pakistan, particularly among members of the Shiite minority, following US and Israeli strikes on Iran that killed Khamenei and other senior officials. While Shiites are a minority nationwide, they form a majority in some northern districts and boast significant numbers in major urban centers.

Demonstrators in Pakistan’s southern port city of Karachi also stormed the US Consulate on Sunday, smashing windows and attempting to burn the building. Police responded with batons, tear gas, and gunfire, leaving 10 people dead and more than 50 injured.

The US embassy and its consulates in Karachi and Lahore canceled visa appointments and American Citizen Services on Monday, citing security concerns. Pakistani authorities have beefed up security at US diplomatic missions across the country, including around the US consulate building in Peshawar, to avoid any further violence.

Also Monday, the Pakistan Stock Exchange plunged, with the benchmark KSE-100 Index falling nearly 10 percent amid rising geopolitical tensions following attacks on Iran. Investors sold off shares across sectors, with analysts citing heightened uncertainty as the main driver behind the sharp decline.

Sunday’s unrest came amid ongoing cross-border fighting between Pakistan and Afghanistan, which began Thursday after Afghanistan launched attacks in retaliation for Pakistani airstrikes the previous Sunday. Pakistan has since carried out repeated operations along the border.

— With additional input from AP.