Public-Private Partnership Expected to Boost Revenue and Services
ISLAMABAD: Pakistan Railways has transferred the commercial management of five passenger trains to private-sector partners under a public-private partnership model, securing contracts worth Rs11.1 billion in what officials described as the most successful outsourcing initiative in the department’s history.
Federal Minister for Railways Muhammad Hanif Abbasi announced the development and said the new arrangement would significantly enhance revenue generation while improving passenger services across the railway network.
The trains included in the outsourcing programme are Awam Express, Millat Express, Karakoram Express, Mianwali Passenger and Narowal Passenger. According to railway officials, the department previously generated around Rs8 billion annually from these services. However, the new agreements are expected to increase earnings to Rs11.1 billion, resulting in an additional Rs3.1 billion in revenue.
Furthermore, officials stated that Awam Express, Millat Express and Karakoram Express will operate under a structured public-private partnership framework, while Mianwali Passenger and Narowal Passenger services will also be managed by private operators to improve operational performance and passenger facilities.
Officials Highlight Revenue Growth and Private Sector Confidence
Railway authorities said the outsourcing model is designed to enhance efficiency, modernise onboard services and strengthen revenue streams without affecting public access to rail transport.
Meanwhile, Abbasi congratulated the Chief Commercial Manager and the commercial team of Pakistan Railways for successfully completing the bidding process. He noted that strong participation from private companies reflected growing confidence in the railway sector and its future potential.
Broader Reforms Aim to Modernise Railway Operations
The minister also highlighted the success of earlier freight train outsourcing initiatives, which have generated encouraging financial results. According to officials, revenue from outsourced freight operations is expected to exceed Rs10 billion during the next fiscal year.
In addition, Abbasi said Pakistan Railways is on track to surpass the Rs100 billion revenue mark for the first time in its history during the current financial year.
Officials added that the latest agreements form part of broader reforms focused on modernising railway operations, increasing private-sector participation and reducing financial pressures on the national rail network while delivering better services to passengers and freight customers across the country.
