Deputy Prime Minister Ishaq Dar has chaired a meeting to assess proposals for revamping and restructuring Pakistan Railways, saying a modern, efficient and financially viable railway network is vital for national economic integration and regional connectivity. The meeting examined financing frameworks and operating models for modernising the network, including public-private partnerships, domestic bank financing and international funding.

A network admitting decades of neglect

The review comes as Railways Minister Hanif Abbasi told parliament’s standing committee on railways that the department must first acknowledge decades of neglect, outdated infrastructure and ageing rolling stock. He set 31 December as the deadline for resolving 70 to 80 per cent of the causes behind frequent freight train derailments, noting that Pakistan Railways still runs German passenger coaches dating from the 1960s and 1970s. Talks with the Asian Development Bank on upgrading the 480-kilometre Rohri to Karachi track are in their final stages, with completion expected within three years.

Revenue up, accidents slightly down

Officials told the committee that 89 railway accidents of different categories had been reported so far in 2026, compared with 92 in the same period last year. Pakistan Railways generated Rs115 billion in revenue for the first time in the previous financial year and has set a target of Rs160 billion for the current year. Rehabilitation work at Rohri Junction is under way with the Sindh government, and modern diesel multiple-unit trains are planned for eight branch routes in Punjab.

What happens next

The meeting was attended by Special Assistant Tariq Bajwa, the Governor of the State Bank of Pakistan, the secretaries of railways and economic affairs, and senior officials. No timetable for the restructuring plan was announced, but officials said the options under discussion are intended to make the railway financially sustainable rather than dependent on repeated state support.