New Delhi, April 12 (IANS) Pakistan Railways, once regarded as a backbone of national integration, is grappling with a severe structural crisis marked by weak governance, ageing infrastructure and declining public trust, a report has said.

According to recent government and industry data cited by The News International, the railways’ revenue has risen significantly from around Rs 60 billion in 2021-22 to over Rs 93 billion in 2024-25 — reflecting nearly 50 per cent growth.

The increase has been driven by improved operations, outsourcing initiatives and partial revival of services.

However, the financial picture remains strained when expenditures are taken into account. Annual costs are estimated at around Rs 120 billion, leaving a deficit of Rs 30-35 billion.

While a modest surplus of about Rs 2 billion has been reported for 2024-25, it excludes pension liabilities and long-term infrastructure costs, the report said.

The system continues to rely heavily on government support, with federal subsidies estimated at Rs 40-50 billion annually, the report added.

The decline in freight share underscores deeper inefficiencies. From carrying 75 per cent of the country’s freight in 1970, Pakistan Railways now handles less than 5 per cent, as road transport dominates logistics.

This shift has contributed to higher logistics costs, estimated at 14-18 per cent of GDP, compared to 8-10 per cent in more efficient economies.

Globally, freight remains the primary revenue driver for railways, but in Pakistan it contributes only around Rs 30 billion.

Operational challenges further compound the crisis. Passenger trains operate at average speeds of 50-65 km/h, while freight trains are even slower due to outdated tracks and reliance on manual signalling.

Safety concerns persist, with 95 incidents reported in 2025 and more than 3,000 of the country’s 7,000 level crossings remaining unmanned.

Experts argued that Pakistan Railways suffers from an unclear institutional model, operating neither as a fully commercial entity nor as an optimised public utility.

Comparisons with global systems highlight this gap. The UK separates infrastructure from operations to promote competition and efficiency, while India has strengthened its unified public network through electrification and dedicated freight corridors.

Pakistan, by contrast, remains stuck in a hybrid structure that has led to inefficiencies and policy drift, the report stated.

–IANS

pk