Pakistan Railways to complete first phase of largest digitization drive by June 2026

People wait to board a train at a railway station in Lahore on June 15, 2024, as they travel back home ahead of Eid al-Adha, the feast of the sacrifice marking the end of the Hajj pilgrimage to Mecca. (AFP/File)
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Updated 20 January 2026
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Pakistan Railways to complete first phase of largest digitization drive by June 2026

  • Project introduces GPS tracking, fiber network, command centers to cut delays, accidents
  • Railways say first phase funded from own revenue amid broader IMF-backed reform push

ISLAMABAD: Pakistan Railways will complete the first phase of its largest-ever digitization program by June 2026, the country’s railways minister said this week, as the state-run operator moves to modernize operations, improve safety and reduce chronic delays across its aging rail network.

The initiative, known as the Railway Advanced Infrastructure Network (RAIN), is a nationwide digital overhaul designed to introduce real-time monitoring, centralized operational control and data-driven decision-making across Pakistan Railways, which has long struggled with safety lapses, service disruptions and financial losses.

The project comes as Pakistan faces sustained pressure to reform loss-making state-owned enterprises under an International Monetary Fund-backed stabilization program, with transport infrastructure seen as critical to improving economic efficiency and public services in a country of more than 240 million people.

Pakistan Railways, once the backbone of long-distance transport in the country, has seen its share of passenger and freight traffic decline over decades due to underinvestment, competition from road transport and repeated safety incidents. Officials say the RAIN project is intended to reverse that trend by modernizing core infrastructure and restoring public confidence in rail travel.

“The RAIN Project will significantly reduce train delays and accidents, enhance passenger services, and improve overall operational efficiency,” Railways Minister Muhammad Hanif Abbasi said, according to an official statement issued after he chaired a review meeting on the project.

According to the railways ministry, Phase-I of the RAIN program will be financed entirely through Pakistan Railways’ own revenue, part of efforts to improve financial discipline and reduce reliance on government subsidies.

The first phase includes the installation of Global Positioning System (GPS) tracking on all trains and locomotives, allowing railway authorities to monitor train movements in real time and respond more quickly to disruptions or emergencies.

It also includes the establishment of command and control centers at Pakistan Railways’ headquarters in Lahore and at all divisional offices, enabling centralized oversight of operations and faster decision-making during accidents or delays.

Another major component is the fiber-optic networking of around 1,700 kilometers of the main ML-1 railway line, Pakistan’s busiest north-south corridor linking major cities and ports, to support high-speed data transmission and digital monitoring systems.

The project further includes the rollout of “safe and smart” railway stations at major hubs, modelled on upgrades already carried out at Rawalpindi station, alongside the provision of high-speed Internet services at selected stations to improve passenger experience and operational coordination.

The railways ministry said additional details on subsequent phases of the digitization program would be announced in due course.
 


Pakistan forms committee to negotiate financial advisory services for Islamabad airport privatization

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Pakistan forms committee to negotiate financial advisory services for Islamabad airport privatization

  • Committee to engage Asian Development Bank to negotiate terms of financial advisory services agreement, says privatization ministry
  • Inaugurated in 2018, Islamabad airport has faced criticism over construction delays, poor facilities and operational inefficiencies

ISLAMABAD: Pakistan’s Privatization Ministry announced on Wednesday that it has formed a committee to engage the Asian Development Bank (ADB) to negotiate a potential financial advisory services agreement for the privatization of Islamabad International Airport.

The Islamabad International Airport, inaugurated in 2018 at a cost of over $1 billion, has faced criticism over construction delays, poor facilities, and operational inefficiencies.

The Negotiation Committee formed by the Privatization Commission will engage with the ADB to negotiate the terms of a potential Financial Advisory Services Agreement (FASA) for the airport’s privatization, the ministry said. 

“The Negotiation Committee has been mandated to undertake negotiations and submit its recommendations to the Board for consideration and approval, in line with the applicable regulatory framework,” the Privatization Ministry said in a statement. 

The ministry said Islamabad airport operations will be outsourced under a concession model through an open and competitive process to enhance its operational efficiency and improve service delivery standards. 

Pakistan has recently sought to privatize or outsource management of several state-run enterprises under conditions agreed with the International Monetary Fund (IMF) as part of a $7 billion bailout approved in September last year.

Islamabad hopes outsourcing airport operations will bring operational expertise, enhance passenger experience and restore confidence in the aviation sector.

In December 2025, Pakistan’s government successfully privatized its national flag carrier Pakistan International Airlines (PIA), selling 75 percent of its stakes to a consortium led by the Arif Habib Group. 

The group secured a 75 percent stake in the PIA for Rs135 billion ($482 million) after several rounds of bidding, valuing the airline at Rs180 billion ($643 million).

Pakistan’s Finance Minister Muhammad Aurangzeb said this week the government has handed over 26 state-owned enterprises to the Privatization Commission.