Record Financial Turnaround
Pakistan Railways has recorded its highest-ever annual revenue of Rs115.157 billion in financial year 2025-26, marking a 24% rise from the previous year, while the minister for railways underlined that ML-1, ML-3 and the Thar coal connectivity projects remain critical for the organisation’s sustained growth.
Briefing the federal cabinet, Minister for Railways Hanif Abbasi said the state-run entity would continue modernising infrastructure, strengthening regional connectivity, improving passenger and freight services, and accelerating digital transformation.
Prime Minister Shehbaz Sharif expressed satisfaction over the financial turnaround and asked the minister to share details with the cabinet.
Revenue rose to Rs115,157 million in FY26 from Rs92,728 million in FY25 and Rs80,732 million in FY24, reflecting a 42% increase over two years. Freight earnings reached Rs40,783 million, passenger earnings stood at Rs50,590 million, and sundry earnings climbed to Rs16,401 million.
Income from property and land jumped from Rs5,022 million to Rs11,956 million, driven by better commercial use of railway assets. The cumulative operating surplus improved sharply from 1% in FY24 to 4% in FY25 and further to 15% in FY26.
Abbasi attributed the gains to a focused strategy covering financial sustainability, stronger governance, public-private partnerships and digitalisation of processes. These reforms, he said, had restored commercial viability, improved operational efficiency and modernised service delivery.
Key Projects For Future Growth
The minister told the meeting that the implementation of ML-1, ML-3 and Thar coal rail link projects is essential for the long-term growth of Pakistan Railways.
The cabinet appreciated the efforts of the railways minister and his team under the prime minister’s guidance. Officials noted that the broad-based growth across freight, passenger and commercial streams signals a more stable financial base for the organisation.
Continued progress on the major infrastructure projects will be needed to lock in these gains and expand the railways’ role in trade facilitation and regional integration. The minister reaffirmed the resolve to build on the recent improvements and raise the contribution of Pakistan Railways to national economic growth.
Key Messages from the Report:
- Pakistan Railways recorded its highest-ever annual revenue of Rs115.157 billion in FY26, a 24% increase over FY25.
- Revenue grew 42% over two years, from Rs80,732 million in FY24 to Rs115,157 million in FY26.
- Freight earnings reached Rs40,783 million, passenger earnings Rs50,590 million, and sundry earnings Rs16,401 million.
- Income from property and land nearly doubled, from Rs5,022 million to Rs11,956 million.
- Cumulative operating surplus rose from 1% in FY24 to 4% in FY25 and 15% in FY26.
- ML-1, ML-3 and the Thar coal rail link projects were identified as essential for long-term growth.
- Prime Minister Shehbaz Sharif expressed satisfaction over the financial turnaround.
- Reforms cited include financial sustainability measures, stronger governance, public-private partnerships and digitalisation.