Pakistan Railways Expands Outsourcing Plan to Increase Earnings

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Pakistan Railways has announced that it will outsource 11 additional passenger trains in an effort to improve its financial condition. According to officials, this decision is expected to generate Rs. 8.5 billion for the national rail service. The aim is to improve operations, reduce losses, and offer better services to passengers.

During a detailed briefing to Prime Minister Shehbaz Sharif, officials confirmed that tenders for all 11 trains have already been issued. Pakistan Railways has previously outsourced four passenger trains, and the results encouraged the administration to expand the plan even further.

More Railway Assets Moving Toward Private Management

Officials shared that outsourcing is not limited to trains alone. Several important railway assets are also being transferred to private management. These include railway hospitals located in:

  • Lahore
  • Karachi
  • Multan
  • Peshawar
  • Quetta
  • Sukkur

Many railway schools, colleges, and rest houses are also in different stages of the outsourcing process. Authorities believe that private management will help increase efficiency, reduce administrative burdens, and offer better facilities without relying heavily on government funds.

Dry Ports and Other Assets Also Being Outsourced

Pakistan Railways has also begun outsourcing its dry ports situated in:

  • Islamabad
  • Lahore
  • Azakhail

Handing these facilities to private operators is expected to improve cargo handling and modernize the freight system. Officials added that 40 luggage and brake vans will also be outsourced, which is projected to earn an additional Rs. 820 million for the department. These vans are essential for transporting goods safely and efficiently, and outsourcing may help improve their usage and maintenance.

Cargo Train Outsourcing Could Bring Major Revenue

Among the most financially important projects is the outsourcing of two cargo express trains. This process is still ongoing, but authorities are hopeful that once completed, the initiative could bring in Rs. 6.3 billion in revenue.

Cargo transport is one of the strongest potential income sources for Pakistan Railways. By improving cargo services through private support, the department expects faster delivery times, reduced losses, and better business opportunities.

Why Pakistan Railways Is Outsourcing So Much

The large-scale outsourcing plan highlights Pakistan Railways’ goal to recover from years of financial challenges. Many of its assets require upgrades, better management, and more modern systems—resources that the government cannot currently provide on its own.

By partnering with private companies, the railway department hopes to:

  • Reduce operational costs
  • Increase revenue
  • Improve service quality
  • Make train travel more reliable
  • Modernize cargo and passenger services

The government believes that outsourcing will bring positive changes, especially in areas where public-sector management has struggled.