Federal Minister for Railways Hanif Abbasi on Monday rejected the Auditor General of Pakistan’s (AGP) findings regarding Pakistan Railways’ financial performance, describing the report as “misleading” and dismissing claims of a 19 per cent increase in the organisation’s revenue deficit as “completely false”. Speaking to journalists after inaugurating a new Drivers’ Running Room at the Rawalpindi Loco Shed, the minister claimed that Pakistan Railways had achieved record financial performance under the current administration.
Minister Denies Deficit Increase
“The report is misleading. The claim that the railway’s deficit has increased by 19 per cent is a complete lie,” Abbasi said. “For the first time in the institution’s 78-year history, Pakistan Railways has generated revenue of Rs115 billion. The entire organisation has changed its direction, and no one found guilty of wrongdoing will be spared.” His remarks came in response to the recently released AGP report, which identified financial irregularities amounting to Rs11.25 billion in Pakistan Railways during the 2024-25 fiscal year. The report highlighted persistent weaknesses in financial management, procurement practices and internal controls that continue to undermine the performance of the state-owned enterprise.
AGP Findings vs Minister’s Claims
According to the AGP, Pakistan Railways’ net loss exceeded Rs61 billion during the fiscal year, representing an increase of Rs9 billion—or 19.11 per cent—in the revenue deficit compared with the previous financial year. Rejecting the findings, Abbasi said he assumed charge of the ministry in March 2025, inheriting a financially troubled organisation. “I took over the ministry in March 2025. Before that, and throughout 2024, Pakistan Railways was already facing a severe deficit,” he said.
Digitalisation and Record Earnings
Highlighting his government’s initiatives, the minister said the digitalisation of Pakistan Railways was nearing completion and that the organisation had achieved record earnings. He added that improved accommodation had been provided to railway employees for the first time, while similar Drivers’ Running Rooms would soon be established in Khanewal, Rohri and Karachi. On the financial front, Abbasi claimed that Pakistan Railways had reduced its expenditure by Rs3.06 billion.
Outsourcing and Pensioners
“Our pensioners are our pride,” he said. “There was a time when we could not even imagine railway earnings exceeding Rs100 billion. Today, we have crossed that milestone. In addition, five trains have been outsourced, generating Rs11 billion.” The minister also announced stricter enforcement against the misuse of complimentary railway passes. “Both the person who issues a free railway ticket unlawfully and the person who uses it will face legal action and imprisonment,” he warned.
Operational Improvements
Abbasi said railway operations had continued despite disruptions to container and cargo movement following the conflict in February. He added that locomotives, many of which had not undergone major overhauls for the past nine years, were now being refurbished. “All locomotive power units will be overhauled by 23 March next year,” he said. He further claimed that Pakistan Railways had generated Rs3 billion in revenue from railway land across its various divisions.
ML-1 Project and Encroachments
“I am not extending favours to any of my relatives or friends,” the minister asserted, adding that the Karakoram Express, Millat Express and several other passenger trains would soon undergo complete refurbishment. He also hinted at a major announcement regarding the long-delayed Main Line-1 (ML-1) railway modernisation project. “I will soon give the nation good news regarding the ML-1 project,” he said. Addressing encroachments around railway stations, Abbasi said informal markets operating outside railway premises would be relocated. “Just as vendors outside Lahore Railway Station were shifted to alternative locations, traders operating outside Rawalpindi Railway Station will also be relocated to designated sites,” he said.
Cabinet Reshuffle Query
Responding to a question regarding reports of a possible federal cabinet reshuffle, the minister declined to comment. “It is not my responsibility. The Prime Minister will take whatever decision he considers appropriate,” Abbasi said.
