ISLAMABAD: Railways Minister Hanif Abbasi on Friday informed the National Assembly Standing Committee on Railways that the Punjab government had expressed willingness to finance Rs350 billion for the upgradation and dualisation of railway tracks in the province.

Briefing the committee, Mr Abbasi said that during a recent meeting with Punjab Chief Minister Maryam Nawaz in Lahore, she showed interest in supporting the infrastructure initiative, which aligns with the broader goals of modernising Pakistan’s railway network.

The Main Line-1 (ML-1) project, being carried out under the China-Pakistan Economic Corridor (CPEC), is a key part of this effort and aims to upgrade the country’s primary rail corridor from Karachi to Peshawar. With an estimated cost of $6.8bn, the project is expected to enhance transport efficiency, reduce travel time, and facilitate freight and passenger movement, particularly as part of Pakistan’s regional connectivity strategy with Central Asia.

Meanwhile, Mr Abbasi announced that Pakistan Railways had achieved a record earning of Rs93bn during the fiscal year 2024-25 — the highest in the organisation’s 78-year history. Of this, Rs47.5bn came from passenger services, while freight services generated Rs31.5bn. The earnings during FY24 stood at Rs88bn.

Minister says PR earned record Rs93bn in FY25

The minister also reiterated that if international funding for ML-1 does not materialise, the government is considering using its own resources to initiate the project. Pakistan continues to seek Chinese investment for the scheme.

ML-1 project

Separately, Pakistan Railways Chairman Syed Mazhar Ali Shah told the Senate Standing Committee on Railways that the ML-1 project would commence in the current fiscal year. The ministry, he said, had submitted a proposal to the federal government seeking Rs75bn in funding for the project under the 2025-26 budget.

Minister Abbasi informed the committee that PR had decided to outsource its freight services to the private sector, adding that several multinational companies had already shown interest in operating the service.

Responding to queries about freight operations, the PR chief executive officer told the committee that the organisation currently handles about 5-8 per cent of the country’s freight.

The committee stressed the need for improving freight services to meet growing domestic demand.

The railways minister said all PR rest houses are being outsourced to reputable companies to ensure better utilisation. Regarding the current status of the Royal Palm Golf and Country Club in Lahore, the Railways Board secretary informed the committee that 12 bids were expected and would be opened on July 22. The leasing process, he said, is being supervised by the Supreme Court.

Published in Dawn, July 12th, 2025