Pakistan Railways wants to more than double its freight share after rebuilding ML-1, but the upgrade has yet to start and the department still runs at a loss
LAHORE, Nov 5 (Focus Pakistan) - Pakistan Railways wants to grab 20% of the country’s freight market, two and a half times its current 8% share, once it rebuilds the Karachi-Peshawar Main Line-1 (ML-1). It also wants its passenger share to climb to 7.52% from 5%.
There is a catch. Construction on ML-1 has yet to begin, and the first section will need up to three years of work once it does.
Both numbers come from a reform plan the department hopes will finally drag it out of the red. Freight sits first on the list. Then come passengers, private money and a long digital to-do list.
The Line Everything Depends On
ML-1 is the backbone of the network. It runs from Karachi to Peshawar and carries 98% of the railway’s freight and 76% of its passengers, according to Planning Minister Ahsan Iqbal.
The government will rebuild it in stages, starting with the 480-kilometre Karachi-Rohri stretch. Iqbal has put that section’s cost at about $2.5 billion, up from earlier estimates of around $2 billion. Passenger trains could then hit 160 km/h. Freight would speed up too, from 30 km/h to 80 km/h.
Officials want to break ground in January 2027. If the work takes two and a half to three years, the first section could open between mid-2029 and early 2030.
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The Asian Development Bank has proposed up to $1.1 billion for Karachi-Rohri, its project documents show, though the facility still awaits approval. Estimates for the full line range from $6.66 billion in railway ministry documents to about $10 billion cited by Iqbal.
Financing delays have held the project back for years. China once looked set to fund the whole line, before Islamabad turned to the ADB for the first leg.
ML-2 and ML-3 get upgrades too. Officials promise more capacity, safer track and shorter trips.
Record Revenue, Still in the Red
The freight push comes off a strong year. Pakistan Railways earned a record Rs115.16 billion in FY26, up 24%. Freight brought in Rs40.78 billion, a 27.8% jump, and passengers Rs50.59 billion. Costs fell to 84.7% of revenue from 96% a year earlier.
Even so, Railways Minister Hanif Abbasi acknowledged in July that the department still runs at a loss, citing its weak position against road transport.
Now the targets get steeper. For FY27, Pakistan Railways has set freight revenue at Rs65 billion, above its Rs60 billion passenger target. That would mean freight earnings jumping almost 60% in a single year, and freight overtaking passengers as the bigger earner.
To get there, the department will chase bulk cargo: coal, containers, cement, fertiliser and rock phosphate. It plans new freight terminals, marshalling yards and multimodal logistics parks, along with better passenger facilities at stations.
From Tickets to Weighbridges
The digital overhaul is already under way. The RABTA app lets passengers book and pay for tickets online, and an official said it now runs fully.
Wi-Fi is arriving at major stations, alongside real-time train tracking and digital freight booking. Smart stations, digital complaint handling, automated command and control systems and automated weighbridges are in the works.
The railway now uses SAP software for finance and administration, the official said. Rollout across the wider organisation continues.
Pakistan Railways also plans to hand selected hospitals and schools to outside managers. It wants private investors to develop its commercial land. Property and land brought in nearly Rs12 billion last year.
Private partners would bring investment, better services and more revenue while easing the burden on the government, the official said.
The department has its targets on paper. The tracks it needs to hit them have yet to break ground.
