ISLAMABAD, Nov 2 (Wealth Pakistan): Pakistan Railways (PR) has generated total revenue of Rs3.95 billion through its cargo vans operated directly by the department and outsourced partners over the past three years, reflecting the department’s continued efforts to boost freight operations and improve logistics efficiency across its network.
Revenue Growth Over Three Years
According to official documents reviewed by Wealth Pakistan, PR collected Rs836.247 million in FY2021-22, Rs1.184 billion in FY2022-23, and Rs1.939 billion in FY2023-24.
The consistent growth highlights the department’s gradual recovery in freight operations and its expanding role in supporting trade and transport across the country.
The data shows that the revenue generated from outsourced luggage and brake vans was nearly three times higher than that earned by the vans and trains operated directly by the department.
During the three-year period, PR-operated trains earned Rs1.169 billion — including Rs265.998 million in FY2021-22, Rs444.583 million in FY2022-23, and Rs458.410 million in FY2023-24.
In contrast, the outsourced vans generated Rs2.790 billion, comprising Rs570.249 million in FY2021-22, Rs739.630 million in FY2022-23, and Rs1.480 billion in FY2023-24.
Outsourcing Strategy and Mechanism
Officials at the Ministry of Railways said the decision to outsource freight and luggage vans was taken to meet the growing demand from the industrial and energy sectors.
The strategy also aims to enhance the efficiency of freight transport, connect major cities, and stimulate economic activity through improved trade logistics.
The outsourcing process is carried out through open tendering, where bids are advertised publicly.
Contracts are awarded after competitive evaluation based on transparent criteria. The benchmark for the bid is set according to the previous year’s revenue performance of luggage and brake vans.
Successful bidders are required to deposit 15 percent of the total contract amount in advance, with the remaining balance payable in 10 equal monthly installments.
The contracts are valid for two years and can be extended for an additional year based on mutual consent and satisfactory performance.
Freight Network and Stakeholders
The key stakeholders in the outsourcing framework include Pakistan Railways and private contractors operating luggage and brake vans under the agreements.
In previous years, Pakistan Railways managed a network of regular freight trains countrywide, including Cargo Express services from Karachi to Multan, Faisalabad, and Lahore; Kundian freight operations between Quetta and Taftan; container services for Prem Nagar and Qila Sattar Shah; oil transportation routes between Multan and Rawalpindi; and dedicated cargo express services supporting national industrial and commercial supply chains.
Minister Highlights Transformation
Speaking to the media outside Parliament House, Minister for Railways Muhammad Hanif Abbasi said that Pakistan Railways is undergoing a major transformation in its 77-year history.
He added that punctuality in train operations had improved significantly — from just 46 percent to over 86 percent — despite challenges related to the outdated railway infrastructure.
The minister emphasized that the department’s focus on freight and efficiency reforms would help strengthen financial sustainability and national connectivity.