Pakistan’s state-owned railway system—vital yet struggling—loses around $3.5 million each year due to fare evasion, Railways Minister Hanif Abbasi said on Thursday.
One of the country’s oldest institutions, Pakistan Railways has long faced financial troubles, aging infrastructure, and poor service quality. Passenger numbers have fallen amid growing competition from buses and airlines, while freight revenues have declined as businesses shift to road transport.
Experts argue that sweeping reforms are needed, including infrastructure upgrades and stronger anti-corruption measures.
“According to the 2023–24 Annual Report, Pakistan Railways suffers yearly losses of Rs1.1 billion ($3.5 million) due to non-paying passengers,” Abbasi told reporters in Islamabad. “Thanks to tighter monitoring, the figure has slightly improved but still hovers around Rs1 billion.”
The minister warned that both fare evaders and complicit railway staff now face jail time. The vigilance department has been directed to step up enforcement to curb losses that have long burdened the system.
Abbasi also unveiled modernization plans to revive the network. Over 200 new locomotives are being manufactured at the Islamabad Carriage Factory to replace the aging fleet.
Additionally, Pakistan is negotiating with the Asian Development Bank for funding to upgrade the 480-kilometer Karachi–Rohri line—a key route in the national network. Track improvements are also planned between Lahore and Rawalpindi to enhance efficiency and safety.