Pakistan Railways targets Rs1tr revenue after $2bn ADB loan

January 07, 2026 (MLN): Pakistan Railways has secured a $2 billion loan from the Asian Development Bank for the construction of a new 480-kilometre railway track between Karachi and Rohri.

The project is expected to reduce travel time on the route by at least five hours and represents one of the largest infrastructure investments in the rail sector in decades.

Pakistan Railways has also set a revenue target of Rs1 trillion by June 2026.

Federal Minister for Railways Muhammad Hanif Abbasi stated that the target is part of a broader plan to expand rail infrastructure, improve operational efficiency, and increase freight and passenger capacity across the network.

The Karachi Rohri track is scheduled to break ground in July 2026 and is planned for completion within two and a half to three years, according to the press release.

In parallel, work is underway under the Reko Diq-linked rail plan to develop a 900-kilometre route from Rohri to Nokundi.

This includes 500 kilometres of new track and the rehabilitation of 400 kilometres of existing infrastructure, along with the addition of the 87-kilometre Nokundi Taftan section to improve rail connectivity with Iran.

Pakistan Railways is also expanding regional and provincial routes. A 54-kilometre People’s Train corridor is being developed in Balochistan at a cost of Rs4bn, while eight regional routes are planned in Punjab.

Provinces including Punjab, Sindh and Balochistan have allocated funds to operate branch lines, with discussions ongoing with Khyber Pakhtunkhwa.

On the operations side, the railway has shifted 155 stations to solar power and reported its highest-ever daily revenue of Rs300 million.

A 1,700-kilometre fibre optic network is being laid to support digitisation, while ticketing has moved to mobile platforms through the Rabta App.

Pakistan Railways is also implementing a Rs8.9bn digital systems project with FWO and a $85 million logistics project with DP World at Pipri Yard to improve freight handling.

Passenger services are being upgraded in phases, with security cameras, Wi-Fi, and improved dining facilities being added to major trains by the end of 2026.

Connectivity projects with Central Asia and Iran, including the Islamabad Tehran Istanbul rail service, are under review pending security clearance.

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