Pakistan Railways Approves Reform Plan to Increase Freight Share to 20%, Improve Passenger Services

Pakistan Railways has approved a comprehensive reform roadmap aimed at modernising its operations, expanding freight transportation, improving passenger facilities and strengthening its financial position.

The plan outlines a series of changes covering railway infrastructure, digital services, private-sector investment and operational management. One of its major targets is to increase Pakistan Railways’ share of the country’s freight transportation market from the existing 8% to approximately 20% following the upgradation of Main Line-1 (ML-1).

The railway administration also aims to increase its passenger transport market share from 5% to 7.52% after the completion of the ML-1 upgrade.

The reform roadmap was reported by the Associated Press of Pakistan (APP), citing an official in the Ministry of Railways. The announcement was also covered by several Pakistani news organisations on November 4 and 5, 2026.

The proposed changes could reshape how Pakistan Railways handles cargo, manages passenger services and generates revenue. However, many of the targets depend on infrastructure improvements that have yet to be completed.

Pakistan Railways Sets 20% Freight Market Share Target

Expanding freight transportation is one of the central objectives of the reform programme.

According to the Ministry of Railways official quoted by APP, Pakistan Railways currently handles approximately 8% of the country’s freight transportation market. The department wants to increase this share to around 20% after the completion of the ML-1 upgrade.

Achieving this target would require a substantial expansion of the railway’s cargo-handling capacity, improved logistics infrastructure and stronger coordination with businesses that transport goods across Pakistan.

The railway administration intends to focus on transporting several categories of commodities, including:

• Coal
• Shipping containers
• Cement
• Fertilisers
• Rock phosphate
• Other bulk industrial materials

These commodities are particularly relevant to railway freight operations because they are transported in large quantities and often require regular movement between industrial centres, ports, warehouses and distribution facilities.

For businesses, shifting a greater proportion of cargo from roads to rail could offer another transportation option, particularly for long-distance shipments.

Rail freight expansion could also reduce pressure on highways and potentially improve the efficiency of the country’s logistics network.

However, achieving a 20% market share will depend on more than increasing the number of freight trains. Railways will need reliable schedules, sufficient wagons, modern terminals, competitive pricing and the ability to deliver cargo within commercially acceptable timeframes.

Passenger Transport Share Targeted to Reach 7.52%

The reform plan also includes targets for improving passenger transportation.

Pakistan Railways currently accounts for approximately 5% of the country’s passenger transport market, according to the official information reported by APP.

The department wants to increase this share to 7.52% after the completion of ML-1 modernisation.

Although the proposed increase is smaller than the freight target in percentage-point terms, it represents an effort to attract more passengers towards rail transportation.

To achieve this objective, the roadmap envisages improvements in railway infrastructure, passenger facilities and operational efficiency.

The government also plans to upgrade facilities at railway stations and improve services available to passengers during their journeys.

Potential areas of improvement include:

• Better station facilities and passenger waiting areas.
• Improved railway infrastructure and track conditions.
• Reduced journey times on upgraded corridors.
• Better train safety and operational reliability.
• Digital ticketing and payment services.
• Improved passenger complaint management.

For passengers, the success of these measures will ultimately depend on whether they result in more reliable trains, convenient ticketing, better facilities and competitive fares.

The 7.52% target is linked to the completion of ML-1 and should not be interpreted as an immediate increase in passenger numbers.

ML-1, ML-2 and ML-3 Upgrades Form the Backbone of the Plan

Infrastructure modernisation is essential to the railway reform programme.

The roadmap includes upgrades to three major railway corridors: ML-1, ML-2 and ML-3.

These routes are important components of Pakistan’s railway network and are expected to support improvements in passenger and freight transportation.

The proposed infrastructure improvements are intended to:

1. Increase railway line capacity.
2. Improve train safety.
3. Reduce passenger journey times.
4. Improve operational efficiency.
5. Increase freight transportation capacity.
6. Strengthen connectivity between important economic centres.

What is the ML-1 project?

Main Line-1 is one of Pakistan’s most important railway infrastructure projects.

The corridor connects Karachi with Peshawar through major cities and industrial centres, including Hyderabad, Rohri, Multan, Lahore and Rawalpindi.

Its modernisation is intended to improve track infrastructure, signalling, train operations and the overall capacity of the railway network.

The government has previously discussed dividing the 1,726-kilometre ML-1 upgrade into four major sections:

The project is expected to improve connectivity between Karachi’s port facilities and major economic centres in the country.

In September 2026, the government said the Karachi–Rohri section was estimated to cost approximately $2.5 billion, with a targeted completion period of three years. The remaining sections require their own financing and implementation arrangements.

The railway reform roadmap therefore depends significantly on the progress of ML-1. Without improvements to track capacity and railway infrastructure, achieving the proposed increases in freight and passenger market share could prove difficult.

New Freight Terminals and Logistics Parks Planned

Pakistan Railways also plans to expand the infrastructure supporting cargo transportation.

The reform programme includes the development of:

• Freight terminals.
• Marshalling yards.
• Multimodal logistics parks.
• Improved cargo-handling facilities.
• Digital freight booking systems.
• Automated weighbridges.

These facilities are intended to improve the movement of goods between different transportation networks.

A freight terminal provides infrastructure for loading, unloading, storing and transferring cargo. Marshalling yards help organise railway wagons into trains according to their destinations and operational requirements.

Multimodal logistics parks can connect railway transportation with road freight and other logistics services.

Such facilities could be particularly useful for industries that regularly transport cement, coal, fertilisers, containers and other bulk commodities.

For example, a manufacturer could transport goods by road to a railway terminal and then use freight trains for the longer journey. The cargo could subsequently be transferred to trucks for final delivery.

This arrangement could help businesses use rail transportation without requiring direct railway access to every factory or warehouse.

However, the benefits will depend on the location of terminals, available capacity, handling charges and the efficiency of connections between different transport modes.

Pakistan Railways Expands Digital Services

Another important component of the reform roadmap is digital transformation.

Pakistan Railways intends to use technology to improve passenger services, freight operations, administrative management and transparency.

Several digital initiatives are included in the programme.

RABTA e-ticketing application

The RABTA system is designed to provide passengers with online ticket booking and payment facilities.

According to the ministry official quoted by APP, the application is already fully functional.

Digital ticketing can make railway reservations more convenient by reducing the need for passengers to visit booking counters.

It can also help passengers access their booking information through digital platforms.

Real-time train tracking

The reform programme includes real-time train tracking.

This could allow passengers to obtain information about train movements and estimated arrival times.

For railway management, tracking technology can also support operational monitoring and coordination.

However, the practical value of such a service will depend on the accuracy and availability of live information.

Wi-Fi at major railway stations

Pakistan Railways plans to introduce Wi-Fi services at major stations.

This would provide passengers with internet access while waiting for trains.

The initiative could also support the development of more technology-enabled railway stations.

Digital freight booking

The roadmap also includes digital freight booking services.

Businesses could potentially use these systems to arrange cargo transportation and manage freight-related information more conveniently.

Other technology initiatives include automated weighbridges, freight parcel management services, passenger complaint management systems and automated command-and-control arrangements.

SAP-Based ERP System to Improve Administrative Management

Pakistan Railways is also using an SAP-based Enterprise Resource Planning (ERP) system to manage important administrative functions.

ERP systems bring different business processes together within a centralised digital platform.

According to the Ministry of Railways official, the system is supporting the management of:

• Finances.
• Procurement.
• Inventory.
• Stores.
• Payroll.
• Human resources.

Centralising these functions can help organisations monitor their resources, improve record-keeping and make operational decisions using more timely information.

For a large organisation such as Pakistan Railways, which manages employees, infrastructure, equipment, procurement and financial operations across a nationwide network, integrated management systems could support better administrative coordination.

However, the effectiveness of the ERP system will depend on data quality, staff training, implementation standards and consistent use across the department.

Private-Sector Participation and Outsourcing Planned

The reform roadmap also seeks to increase private-sector involvement in selected railway operations and commercial activities.

Pakistan Railways plans to encourage private investment in commercial land development.

It is also considering outsourcing the management of selected railway hospitals and schools.

The government believes greater private-sector participation could help attract investment, improve service delivery and reduce the financial burden on the public sector.

Private companies could potentially bring additional investment, specialised management expertise and operational resources.

Commercial development of railway-owned land could also create additional revenue streams.

However, these arrangements would require transparent agreements, clearly defined responsibilities and effective government oversight.

For railway passengers and employees, the practical impact will depend on how outsourcing is implemented and whether service quality, accessibility and accountability are maintained.

The reform roadmap does not mean that all railway assets or services are being transferred to private ownership. The reported proposals concern selected management and commercial activities.

What the Reform Plan Means for Pakistan’s Economy

Pakistan’s railway network has an important role in connecting ports, industrial centres, agricultural regions and major cities.

Improving freight transportation could have implications beyond the railway department itself.

Lower pressure on highways

Moving more bulk cargo through railways could reduce the number of heavy trucks required for certain long-distance shipments.

This may help reduce congestion and wear on major roads.

Improved industrial logistics

Industries that depend on regular deliveries of raw materials could benefit from more reliable freight services.

Sectors such as cement, fertiliser, energy and manufacturing could potentially use railways for transporting large quantities of goods.

Better port connectivity

Karachi’s ports are important entry and exit points for Pakistan’s international trade.

Improved railway connections between ports and inland economic centres could support the movement of imported and exported cargo.

Potential improvement in financial sustainability

Higher freight volumes, more passengers and additional commercial revenue could create opportunities for Pakistan Railways to strengthen its financial position.

Nevertheless, the reform programme will require investment in infrastructure, technology, maintenance and operational capacity.

The financial benefits will depend on whether additional revenue is sufficient to cover the costs of delivering improved services.

Pakistan Railways’ Freight Performance Provides a Starting Point

The proposed freight expansion comes as Pakistan Railways has reported improvements in its cargo business.

According to an APP report published on September 29, 2026, the department generated approximately Rs41 billion in freight revenue during the 2025–26 financial year.

This exceeded its budgetary target of Rs38 billion by around 7%.

The report also stated that freight revenue was approximately 32% higher than the previous financial year’s figure from freight-specific services.

Pakistan Railways has been expanding commodity-specific train operations, including cargo express, coal, container and phosphate services.

It has also been working on additional services for edible oil and automobile transportation.

These figures provide an indication of the existing freight business, but they should not be confused with the proposed 20% market-share target.

Freight revenue measures the money generated by cargo operations, whereas market share measures the railway’s portion of the overall freight transportation market.

The two indicators provide different information about the department’s performance.

Key Targets and Proposed Reforms at a Glance

Figures and targets are based on the Ministry of Railways information reported by APP. The market-share targets are conditional on infrastructure upgrades.

When Will Pakistan Railways Complete These Reforms?

The reported announcement outlines the reform roadmap and its objectives, but it does not provide a single completion date for the entire programme.

Several initiatives are at different stages of implementation.

For example, the RABTA application is reported to be functional, while other measures, including infrastructure upgrades, logistics parks and additional digital services, require further implementation.

The ML-1 project is particularly important because the proposed freight and passenger market-share increases are linked to its completion.

In October 2026, Prime Minister Shehbaz Sharif directed authorities to accelerate ML-1 work and introduce corporate-style reforms in Pakistan Railways. The government also discussed using the commercial potential of railway-owned land to help finance infrastructure development.

The pace of progress will depend on financing arrangements, project approvals, procurement, construction and coordination among relevant institutions.

Until these requirements are addressed, the targets should be treated as planned outcomes rather than guaranteed results.

Frequently Asked Questions

1. What reforms has Pakistan Railways approved?

The reform roadmap includes freight expansion, passenger service improvements, railway infrastructure upgrades, digital transformation, private-sector participation and administrative modernisation.

2. What is Pakistan Railways’ new freight market-share target?

Pakistan Railways aims to increase its freight market share from approximately 8% to around 20% after the ML-1 upgrade.

3. What is the passenger market-share target?

The department aims to increase its passenger transport market share from approximately 5% to 7.52% following ML-1 modernisation.

4. Which railway lines will be upgraded?

The roadmap includes the modernisation of Main Line-1, Main Line-2 and Main Line-3.

5. What is the RABTA application?

RABTA is Pakistan Railways’ digital ticketing platform, which provides passengers with online booking and payment facilities.

6. Will Pakistan Railways introduce real-time train tracking?

Yes. Real-time train tracking is included in the digital transformation component of the reform roadmap.

7. Will private companies manage railway hospitals and schools?

Pakistan Railways plans to outsource the management of selected hospitals and schools. The proposal concerns selected facilities rather than an announced transfer of all railway institutions.

8. How much freight revenue did Pakistan Railways generate in FY2025–26?

According to an APP report, Pakistan Railways generated approximately Rs41 billion in freight revenue during FY2025–26, exceeding its Rs38 billion target.

Conclusion

Pakistan Railways’ reform roadmap sets out an extensive programme covering freight transportation, passenger services, infrastructure, technology and private-sector participation.

The proposed increase in freight market share from 8% to 20% is one of its most significant targets. The department also wants to increase passenger market share to 7.52% following the modernisation of ML-1.

Digital ticketing, train tracking, automated freight systems and improvements at railway stations are also intended to make services more accessible and efficient.

However, the success of the programme will depend on implementation. Completing major infrastructure projects, securing financing, improving operational reliability and attracting private investment will be important to achieving the stated objectives.

For passengers and businesses, the key measure will ultimately be whether these reforms translate into more reliable trains, improved cargo services, shorter journeys and better railway facilities.