ISLAMABAD: Pakistan Railways (PR) posted the highest annual revenue of Rs115.157 billion in 2025-26, reflecting a 24.19 per cent year-on-year increase amid administrative reforms, improved financial management and stronger commercial performance.

However, PR was still at a loss, owing to multiple factors, including a lack of capacity to compete with road transportation.

Speaking to a select group of journalists, Railways Minister Hanif Abbasi said the financial and management targets had been successfully achieved.

He stressed that the work continues on developing a state-of-the-art railway network, upgrading infrastructure, expanding freight operations, introducing digital systems and improving passenger services to international standards.

“We have achieved the targets that prove financial management of Pakistan Railways can be achieved,” Mr Abbasi said, adding this reflects the collective efforts of the entire team.

He added that the focus now is on transforming railways into a modern, efficient and financially sustainable organisation. The official figures showed that passenger revenue increased to Rs50.590bn, the highest in the organisation’s history, while freight earnings reached Rs40.781bn.

Revenue from the sundry segment climbed to Rs16.401bn, registering an impressive 90.82pc annual increase.

Freight operations remained one of the strongest contributors to revenue growth, increasing from Rs31.91bn to Rs40.78bn, a 27.78pc annual increase, while cumulative growth over the past two years reached 45pc.

Passenger revenue rose 3.37pc year-on-year to a record Rs50.59bn.

The detailed revenue breakdown showed that property and land generated Rs11.99bn, scrap sales contributed Rs1.96bn, while commercial activities added Rs2.12bn, highlighting Pakistan Railways’ growing ability to generate income beyond its traditional passenger and freight businesses.

Financial data further showed that Pakistan Railways’ total earnings rose from Rs88.79bn in 2023-24 to Rs92.72bn in 2024-25, before reaching a record Rs115.15bn in 2025-26.

Revenue increased by Rs22.42bn over the previous fiscal year, while overall earnings expanded by Rs26.36bn, or nearly 30pc over the last two years.

Pakistan Railways also reported cash inflows of Rs120.07bn, up from Rs96.37bn a year earlier, representing a 24.6pc increase.

Published in Dawn, July 7th, 2026