Pakistan Railways Records Highest-Ever Revenue of Rs. 115.16 Billion in FY2025-26
ISLAMABAD: Pakistan Railways achieved its highest annual revenue on record during the 2025-26 fiscal year, generating Rs. 115.16 billion through improved commercial operations and administrative reforms. Despite the milestone, the department continued to operate at a financial loss due to long-standing structural challenges.
Speaking to the media, Hanif Abbasi, the Federal Minister for Railways, said the organization met its financial and operational objectives by strengthening management practices, improving revenue collection, and expanding commercial activities.
Revenue Increases by More Than 24 Percent
According to official figures, Pakistan Railways’ total revenue increased by 24.19 percent, rising from Rs. 92.72 billion in the previous fiscal year to Rs. 115.16 billion in FY2025-26.
Passenger services remained a major source of income, generating a record Rs. 50.59 billion, while freight operations contributed Rs. 40.78 billion during the year.
Freight Operations Continue to Grow
Freight services delivered one of the strongest performances, with revenue increasing by 27.78 percent compared with the previous fiscal year.
Officials noted that freight earnings have grown significantly over the past two years, reflecting efforts to expand cargo transportation and improve operational efficiency.
Passenger revenue also showed steady growth, reaching its highest level to date.
Commercial Activities Add to Earnings
In addition to passenger and freight services, Pakistan Railways earned substantial income through commercial activities.
Revenue was generated from property and land management, scrap sales, and other commercial ventures, contributing to the department’s overall financial performance.
The organization’s total earnings have shown consistent growth over the last three fiscal years, while cash inflows also recorded a notable increase during FY2025-26.
Challenges Remain Despite Record Revenue
Although Pakistan Railways reported record earnings, the organization continues to face financial challenges.
According to the Railways Minister, competition from road transportation remains one of the major factors affecting long-term profitability. He said the government is working on a comprehensive modernization plan aimed at improving railway infrastructure, expanding freight services, introducing digital solutions, and enhancing passenger facilities.
The government’s long-term objective is to transform Pakistan Railways into a modern, efficient, and financially sustainable transportation system capable of supporting the country’s growing economic and logistics needs.
