ISLAMABAD: Pakistan Railways is set to undergo a major transformation over the next six months with the induction of 70 power plants, 43 new American “GU-40” locomotives, and newly refurbished passenger coaches into its fleet, a development poised to revolutionise passenger travel, boost freight operations, and significantly enhance departmental revenues.
Pakistan’s Federal Minister for Railways Muhammad Hanif Abbasi announced the massive upgrade on Wednesday, expressing confidence that the current administration has successfully overcome decades of neglect, aging infrastructure, and chronic equipment shortages that have long plagued the state-run enterprise.
BREAKING: Pakistan begins local production of modern railway coaches, with export orders already secured. pic.twitter.com/rzMhZt3Hd8
— The Daily CPEC (@TheDailyCPEC) July 13, 2026
He revealed that the 43 American engines would be integrated into the system by September 30, while seven new power plants are being added monthly, a steady induction expected to resolve the shortage of coaches and restore rail operations to full capacity within the next six months.
VIP culture eradicated, luxury facilities open to public
In a historic move aimed at ensuring equality, Abbasi announced the eradication of the “VIP culture” within Pakistan Railways. A ban has been imposed on the utilisation of luxury salons and VIP guest houses by top officials, including those designated for the Minister, Chairman, Chief Executive, and Inspector General (IG) of Railways.
These premium salons and rest house rooms have now been opened to the general public, who could access them at reasonable rental rates – a decision hailed as a significant step toward transparency and public service.
New Premium Coaches of Pakistan Railways Coming Soon! pic.twitter.com/VU2SeR1Uo6
— Pakistan Railways (@PakrailPK) June 30, 2026
Record revenue achieved despite challenges
Discussing the department’s financial performance, the federal minister credited exceptional teamwork for steering the organization’s revenue to a record Rs 115 billion against a target of Rs 188 billion, despite limited resources and aging infrastructure.
Notably, the freight sector recorded a 27 percent growth despite a shortage of engines and wagons. Revenue from the freight sector has doubled from Rs 8,000 million to Rs 16,000 million, with plans to increase it further in the coming year.
Read Also: Pakistan Railways Annual Revenue Crosses Rs 115 Billion in 2025-26
The minister acknowledged that the maintenance of locomotives and power plants had been neglected over the past nine to ten years. However, he emphasized that the current administration has successfully addressed these long-standing issues.
Pakistan Railways posts record revenue of Rs. 115 billion in FY 2025-26 pic.twitter.com/ntGYqC0f8D
— Pakistan Railways (@PakrailPK) July 7, 2026
Zero tolerance against encroachments
Announcing a zero-tolerance policy against encroachments, the minister asserted that railway land worth billions of rupees across the country is being reclaimed in phases. He made it clear that no further encroachments would be tolerated, adding that all retrieved residential, commercial, and agricultural lands would be leased out by Pakistan Railways through open public auctions.
Read Also: Pakistan Railways Launches Upgraded Awam Express from Peshawar to Karachi
In this regard, Peshawar Division officials have been summoned next week to finalize commercial plans for reclaimed lands in their region.
Regional connectivity and provincial agreements
Regarding regional connectivity, the minister shared details of agreements signed with provincial governments to operate local trains. The Khyber Pakhtunkhwa cabinet has approved local train operations on three routes, pending final approval from the federal cabinet.
Similarly, the Punjab government planned to run local trains on eight routes, while Sindh would operate them on three routes. Furthermore, the “Peoples Train” in Balochistan was scheduled for a grand launch on August 14, supported by a Rs 14 billion funding allocation from the Balochistan government.
