Pakistan Railways (PR) has requested a 130 percent increase in its budget from Rs. 31 billion to Rs. 71 billion for procuring 1,050 bogies.
This request has faced strong objections from the Ministries of Finance and Planning when presented to the Central Development Working Party (CDWP), which deferred the decision.
As of June 30, Railways has acquired 292 of 820 freight wagons and 78 of 230 passenger coaches, with full delivery expected by June 2026. The Finance Ministry challenged its cost structure and enforced an exchange rate of Rs. 278 per dollar instead of the ministry’s Rs. 285.
The Planning Ministry noted that extended delays, bidding cancellations, and changes linked to the ML-1 upgrade under the China-Pakistan Economic Corridor (CPEC) have increased costs and raised liabilities.
Railways’ expenses have also risen due to a 15 percent increase in import and local charges over five years. The Planning Commission criticized PR’s delays and urged it to improve its operational efficiency and revenue generation.
Meanwhile, the Finance Ministry said PR’s poor performance has left it with just 20 percent of the passenger and 4 percent of the freight transport market which also caused a Rs. 55 billion loss in FY23. The ministry recommended a business plan to raise PR’s national transport share to justify further investments.
Railways need to set its priorities correct. 1st fix the lines, apart from a section between Gujranwala to Sadiqabad, the trains barely run above 40kmh. All non main line tracks have abysmal speed limit of 45kmh. While on roads the transport can run at above 100kmh and reduce journey time. Once the lines are corrected, only then passenger and more important freight traffic can come to the railways.
This initiative will also support economic growth by improving connectivity across the country. Looking forward to seeing positive impacts from this development! This upgrade also positively impacts warehousing services in Pakistan, as improved rail connectivity will streamline logistics and support more efficient cargo movement.