Pakistan Railways Posts Record Rs. 115.16 Billion Revenue but Stays in Loss

Pakistan Railways generated its highest ever annual revenue of Rs. 115.16 billion during FY2025-26, but the organization remained in loss despite record earnings due to structural challenges, including its inability to effectively compete with road transportation.

Speaking to journalists, Railways Minister Hanif Abbasi said Pakistan Railways achieved its financial and management targets through administrative reforms, improved financial management, and stronger commercial performance. He said the department is continuing efforts to modernize the railway network, upgrade infrastructure, expand freight operations, digitize services, and improve passenger facilities.

According to official figures, total revenue increased 24.19 percent year over year from Rs. 92.72 billion to Rs. 115.16 billion. Passenger revenue reached a record Rs. 50.59 billion, while freight earnings climbed to Rs. 40.78 billion.

Freight remained one of the strongest contributors to growth, with revenue increasing 27.78 percent from Rs. 31.91 billion a year earlier. Over the past two years, freight revenue has grown by 45 percent. Passenger revenue also reached a record high, rising 3.37 percent year over year.

Revenue from other commercial activities also increased significantly. The sundry segment generated Rs. 16.40 billion, up 90.82 percent from the previous year. Property and land contributed Rs. 11.99 billion, scrap sales generated Rs. 1.96 billion, while commercial activities added Rs. 2.12 billion.

Pakistan Railways’ total earnings have steadily increased from Rs. 88.79 billion in FY2023-24 to Rs. 92.72 billion in FY2024-25 before reaching Rs. 115.16 billion in FY2025-26. Cash inflows also rose 24.6 percent to Rs. 120.07 billion, compared with Rs. 96.37 billion a year earlier.

Despite the record performance, the railways minister acknowledged that Pakistan Railways remains loss making, citing limited capacity to compete with road transportation as one of the key reasons. He said the government’s long term focus is to transform the organization into a modern, efficient, and financially sustainable rail network.