Pakistan Railways hands over commercial management of five trains to private sector for Rs10.75 billion

LAHORE, (APP - UrduPoint / Pakistan Point News - 16th Jun, 2026) Pakistan Railways has achieved a major milestone in its revenue enhancement drive by outsourcing the commercial management of five passenger trains to private sector partners for Rs10.75 billion, marking one of the most successful public-private partnership initiatives in the organization's history.

According to official sources, the move is expected to substantially increase the revenue of Pakistan Railways while improving the quality of services and facilities available to passengers across the country.

Officials said that before the outsourcing arrangement, the same trains were generating significantly lower earnings. Under the new agreements, Pakistan Railways is expected to secure much higher revenues, strengthening its financial position and supporting its ongoing modernization and reform agenda.

As part of the initiative, Awam Express, Millat Express and Karakoram Express will be operated under the Public-Private Partnership (PPP) model. Railway authorities believe that private sector participation will help improve operational efficiency, passenger comfort and service delivery.

In addition, Mianwali Passenger and Narowal Passenger trains have also been outsourced to private partners. The authorities expect the new management structure to bring better onboard facilities, improved maintenance standards and enhanced customer services.

Federal Minister for Railways Muhammad Hanif Abbasi lauded the efforts of the Chief Commercial Manager (CCM) and the commercial team for successfully completing the outsourcing process.

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He termed the achievement a significant step towards making Pakistan Railways a financially sustainable and customer-oriented organization.

The minister recalled that freight train operations had also been outsourced earlier at highly competitive rates, which had produced encouraging results for the department. He said the freight outsourcing initiative alone is expected to generate more than Rs10 billion in revenue during the next fiscal year.

Highlighting the organization's improving financial outlook, Hanif Abbasi expressed confidence that Pakistan Railways would surpass the landmark figure of Rs100 billion in annual revenue for the first time in its history during the current financial year.

He said the government remains committed to revitalizing the railway sector through reforms, investment and greater private sector participation. "We are working hard and the nation will soon receive more good news regarding Pakistan Railways," the minister added.

Officials believe that the latest outsourcing agreements will not only boost revenues but also contribute to improving service quality, operational efficiency and passenger satisfaction, paving the way for a more modern and competitive railway system in the country.