Govt pursuing ML-1 upgrade to improve rail infrastructure, NA told

ISLAMABAD: The National Assembly was informed that the government is pursuing the ML-1 up-gradation project to improve rail infrastructure. Minister of State for Railways Bilal Azhar Kayani told the House during the question hour that a Chinese technical team would soon visit Pakistan to advance the project. He said the improvement of the rail infrastructure from Karachi to Hyderabad was part of Package One of the ML-1 up-gradation. The Pakistan Railways has successfully outsourced the commercial management of multiple trains to private contractors, significantly increasing revenue generation. The security of trains in Balochistan has been enhanced following the Jaffar Express incident. Fencing of the Quetta Railway Station will also be carried out. He said their revenue increased from Rs47.58 billion in 2019-20 to Rs88.73 billion in 2023-24, reflecting an 86.5% growth. “This remarkable progress underscores improved governance and service quality across the board,” he said.

Responding to supplementary questions, he said that through strategic outsourcing and service enhancements, the Pakistan Railways’ revenue rose from Rs3.36 billion to Rs6.21 billion an impressive 84.71% increase. The Pakistan Railways is also focusing on strengthening freight operations to increase revenue and achieve financial sustainability. He acknowledged that the Pakistan Railways operates on an aging 10,633km track network, posing serious challenges to repair and maintenance. “Delays in maintenance and operational inefficiencies stem largely from this outdated infrastructure,” he said. Among the completed PSDP projects, the minister listed immediate track safety works in Karachi and Sukkur Divisions, reconstruction of assets damaged during the 2010 floods, and rehabilitation of the Karachi Port Trust (KPT) rail connectivity.

For 2025-26, he announced plans for track rehabilitation between Hyderabad-New Chhor, Rawalpindi-Hasanabdal, Lahore-Lalamusa-Rawalpindi, Shandara-Kala Khatai, and the procurement of track machines for mechanized maintenance.

In a written reply to a question of Dr Farooq Sattar who asked about a proposal under consideration by the government to lease out Pakistan Railways land in the near future, the Ministry of Railways said the Pakistan Railways leased out its land through open auction as per Railway Property & Land Rules, 2023 duly approved by the federal cabinet vide S.R.O No.768 (1) dated June 22, 2023. The written reply stated that the Pakistan Railways leased out 14,042 acres through a competitive bidding process for different purposes. A revenue of Rs13.547 billion has been generated from leasing of Railway land during the last five financial years, from 2019-20 to 2023-24 at an average of Rs2,709 million per annum

In another written reply, the Ministry of Railways said the PR was currently facing significant financial stability challenges, primarily due to its major expenditure components. The largest portion of the PR expenditure is allocated to pay and pension obligations. Over the past three years, pay and allowances have consistently accounted for 30-32% of total revenue expenditure, while pension payments have represented 35-36%. Additionally, the cost of High-Speed Diesel (HSD) constitutes 20-27%, utilities account for 2-4%, and repair and maintenance expenditures are relatively lower. It is crucial to highlight that the Pakistan Railways is obligated to adhere to federal government notifications regarding civil servant rules. These include mandatory pay increases, adjustments in pay scales, revisions of allowances, and hikes in pension payments, including those linked to the prime minister’s assistance package for the families of deceased employees. These obligations add significant financial pressure on the organization.

Furthermore, the Pakistan Railways has been adversely impacted by rising prices of HSD and increases in utility costs, which have further strained its financial resources. Consequently, the Pakistan Railways is struggling to meet its revenue expenditure requirements. As of now, the organization employs 58,865 staff members, while there are 121,078 pensioners, contributing to the heavy financial burden. The interplay of mandatory fiscal commitments, rising operational costs, and limited revenue generation capacity has left the Pakistan Railways in a challenging position to maintain financial stability and sustain its operations effectively.