Railways secures Rs11.1b through outsourcing of five passenger trains

Pakistan Railways has handed over the commercial management of five passenger trains to private partners under a public-private partnership model, securing contracts worth Rs11.1 billion in what officials described as the most successful outsourcing initiative in the organization's history.

Announcing the development, Federal Minister for Railways Muhammad Hanif Abbasi said the outsourcing arrangement would significantly increase the railway department's revenue while improving services for passengers.

According to railway officials, the five trains included in the outsourcing programme are the Awam Express, Millat Express, Karakoram Express, Mianwali Passenger and Narowal Passenger.

The minister said Pakistan Railways had previously been generating around Rs8 billion in revenue from the same trains, but the new outsourcing agreements would raise earnings to Rs11.1 billion, reflecting a substantial increase in returns.

Under the new arrangement, the Awam Express, Millat Express and Karakoram Express will operate under a public-private partnership framework, while Mianwali Passenger and Narowal Passenger services are also being handed over to private operators with the objective of providing improved facilities and better passenger services.

Railway officials said the outsourcing model is aimed at enhancing operational efficiency, improving onboard services and increasing revenue generation without compromising public access to rail transport.

Abbasi congratulated the Chief Commercial Manager (CCM) and the commercial team of Pakistan Railways on what he termed a landmark achievement, saying the successful bidding process demonstrated growing confidence from the private sector in the railway system.

The minister noted that Pakistan Railways had earlier outsourced freight train operations at competitive rates and that the initiative had produced encouraging results.

He said revenue from outsourced freight train operations is expected to exceed Rs10 billion in the next fiscal year, further strengthening the financial position of the department.

Highlighting the organisation's improving performance, Abbasi said Pakistan Railways is expected to cross the Rs100 billion revenue mark for the first time during the current financial year.

"We are working hard and more good news will come from Pakistan Railways in the coming months," the minister said.

Officials said the latest outsourcing agreements form part of broader reforms aimed at modernising Pakistan Railways, increasing private-sector participation and reducing the financial burden on the national rail network while improving service standards for passengers and freight customers alike.

Reporter: Saeed Ahmed Saeed