By Abdul Ghani

Pakistan Railways generated gross earnings of Rs63.56 billion during July-March FY2025-26, reflecting the continued importance of rail transport in supporting passenger mobility, freight movement and economic integration across the country, according to the Pakistan Economic Survey 2025-26 released by the Ministry of Finance.

The survey highlights railways as a critical component of Pakistan's transport infrastructure, supporting passenger travel, logistics operations and trade connectivity between major economic centres.

According to the survey, Pakistan Railways transported 24.16 million passengers during July-March FY2025-26 while freight operations reached 4,839 million tonne-kilometres, reflecting its continued role in supporting trade and logistics activity across the country.

The Ministry of Finance notes that the railway sector remains important for reducing transportation costs, improving logistics efficiency and providing an affordable mode of travel for millions of passengers.

Pakistan Railways operates 444 locomotives across a rail network spanning 7,791 kilometres, connecting major cities, industrial centres, agricultural regions and ports across the country.

Passenger services remained a major component of railway operations during the period under review, contributing significantly to overall earnings while facilitating mobility across different regions.

Freight operations also continued to play an important role in railway activity. Rail transport supports the movement of bulk commodities and commercial cargo, helping improve logistics efficiency and reduce pressure on road transport networks.

According to the survey, railways remain an important part of broader efforts to strengthen Pakistan's transport and logistics infrastructure and improve regional connectivity.

The report highlights the strategic importance of railway transportation in supporting trade, industrial activity and economic growth by facilitating the efficient movement of people and goods.

Long-term railway development plans continue to focus on improving operational efficiency, expanding capacity and strengthening connectivity across the national rail network.

One of the government's major priorities remains the modernization of railway infrastructure through projects aimed at enhancing speed, safety and carrying capacity.

The Main Line-1 (ML-1) project continues to hold strategic importance for railway modernization and the development of an integrated transport corridor under CPEC. According to the survey, third-party financing negotiations for the Karachi-Rohri section are underway, while financing proposals for the remaining sections have also been prepared.

The Ministry of Finance notes that improved railway infrastructure can support freight transportation by providing a more efficient and cost-effective alternative for cargo movement.

The survey points out that Pakistan's growing economy requires continued investment in transportation infrastructure to meet rising demand for passenger and freight services.

Transport and communications remain important contributors to economic activity by facilitating trade, mobility and access to markets throughout the country.

The report highlights that improved railway performance can generate multiple economic benefits, including lower logistics costs, reduced road congestion and enhanced regional integration.

According to the survey, railway connectivity plays an important role in linking agricultural areas, industrial zones, ports and urban centres, thereby supporting broader economic activity and trade flows.

The report notes that investment in rail infrastructure can contribute to long-term economic competitiveness by improving transportation efficiency and strengthening supply chains.

Although Pakistan Railways remained a key component of the national transport network, its gross earnings of Rs63.56 billion during July-March FY2025-26 were slightly lower than the Rs65.2 billion recorded during the corresponding period of the previous fiscal year.

With 24.16 million passengers transported and freight operations reaching 4,839 million tonne-kilometres during July-March FY2025-26, the railway sector continued to play a significant role in Pakistan's transportation system and broader economic activity.

Credit: INP-WealthPk