Pakistan Railways posted its highest ever annual revenue of Rs115.16 billion in FY2025-26, but the state-owned operator remained in loss despite record earnings, underscoring the structural challenges facing the country’s rail sector.
Speaking to journalists, Railways Minister Hanif Abbasi said the department met its financial and management targets through administrative reforms, improved financial management, and stronger commercial performance. He said efforts are continuing to modernise the railway network, upgrade infrastructure, expand freight operations, digitise services, and improve passenger facilities.
Official figures showed total revenue rose 24.19 percent year-on-year from Rs92.72 billion to Rs115.16 billion. Passenger revenue reached a record Rs50.59 billion, while freight earnings climbed to Rs40.78 billion.
Freight remained one of the strongest drivers of growth, with revenue increasing 27.78 percent from Rs31.91 billion a year earlier. Over the last two years, freight revenue has grown by 45 percent. Passenger revenue also hit a record high, rising 3.37 percent compared to the previous year.
Other commercial segments also posted strong gains. The sundry segment generated Rs16.40 billion, up 90.82 percent from the previous year. Property and land contributed Rs11.99 billion, scrap sales brought in Rs1.96 billion, and other commercial activities added Rs2.12 billion.
Pakistan Railways’ earnings have shown steady growth in recent years, increasing from Rs88.79 billion in FY2023-24 to Rs92.72 billion in FY2024-25 before reaching Rs115.16 billion in FY2025-26. Cash inflows also rose 24.6 percent to Rs120.07 billion, compared with Rs96.37 billion a year earlier.
Despite the record revenue performance, Abbasi acknowledged that Pakistan Railways continues to operate at a loss. He said one of the main reasons is the organisation’s limited ability to compete effectively with road transport.
The minister said the government’s long-term objective is to transform Pakistan Railways into a modern, efficient, and financially sustainable transport network.
