Pakistan Railways Hits Record Rs115 Billion Revenue

Pakistan Railways achieved its highest-ever annual revenue of Rs115.157 billion during FY2025-26, marking a 24% increase compared to the previous fiscal year, Minister for Railways Hanif Abbasi informed the federal cabinet during a recent briefing.

Prime Minister Shehbaz Sharif welcomed the strong financial performance and asked the minister to present the details to the cabinet. Abbasi said the turnaround was driven by a strategy focused on financial sustainability, improved governance, public-private partnerships, and the digitalisation of railway operations, resulting in better institutional management, higher operational efficiency, stronger commercial performance, and improved service delivery.

Figures shared with the cabinet showed that Pakistan Railways' revenue increased from Rs80.732 billion in FY24 to Rs92.728 billion in FY25, before reaching Rs115.157 billion in FY26. This represents an annual increase of Rs22.429 billion (24.19%) and a two-year cumulative growth of Rs34.425 billion (42.64%).

Growth was recorded across all major revenue segments. Freight operations generated Rs40.783 billion, passenger services contributed Rs50.590 billion, while sundry income reached Rs16.401 billion. Revenue from railway land and property more than doubled, rising from Rs5.022 billion to Rs11.956 billion, supported by improved commercial utilisation of railway assets.

Abbasi also highlighted significant gains in financial performance, noting that the organisation's cumulative operating surplus increased from 1% in FY24 to 4% in FY25, before climbing to 15% in FY26. He credited the improvement to tighter cost controls and stronger financial discipline.

The federal cabinet praised the railways minister and his team for implementing reforms and management initiatives under the Prime Minister's leadership that enabled Pakistan Railways to achieve its highest annual revenue on record.

Looking ahead, Pakistan Railways said it will continue modernising infrastructure, expanding regional connectivity, enhancing passenger and freight services, and accelerating its digital transformation initiatives.

The minister added that the timely execution of major projects, including ML-1, ML-3, and Thar coal connectivity, will remain essential for sustaining growth and supporting the government's broader goals of boosting economic activity, facilitating trade, and strengthening regional integration.