New Delhi, April 12 (NationPress) Pakistan Railways, previously seen as a vital element of national cohesion, is currently facing a profound structural crisis characterized by ineffective governance, outdated infrastructure, and a declining public confidence, according to a report.

Recent statistics from both government and industry, referenced by The News International, indicate that the railways' revenue has surged from approximately Rs 60 billion in 2021-22 to more than Rs 93 billion in 2024-25, demonstrating a growth of nearly 50 percent.

This increase is attributed to enhanced operations, outsourcing strategies, and a partial revival of services.

However, when evaluating expenses, the financial scenario remains challenging. Annual expenditures are estimated to be around Rs 120 billion, resulting in a deficit of Rs 30-35 billion.

Despite a modest surplus of approximately Rs 2 billion for 2024-25, this figure does not account for pension obligations and long-term infrastructure expenses, as noted in the report.

The system continues to depend heavily on state support, with federal subsidies approximated at Rs 40-50 billion each year, the report further states.

The reduction in freight share highlights deeper inefficiencies. From transporting 75 percent of the nation’s freight in 1970, Pakistan Railways now manages less than 5 percent, as road transport has taken the lead in logistics.

This transition has resulted in increased logistics costs, estimated at 14-18 percent of GDP, compared to 8-10 percent in more efficient economies.

Globally, freight serves as the primary revenue source for railways, yet in Pakistan, it contributes only around Rs 30 billion.

Operational hurdles exacerbate the crisis. Passenger trains run at average speeds of 50-65 km/h, while freight trains are even slower due to outdated tracks and a reliance on manual signaling.

Safety issues remain a concern, with 95 incidents reported in 2025 and over 3,000 of the country’s 7,000 level crossings remaining unmanned.

Experts contend that Pakistan Railways suffers from a vague institutional model, functioning neither as a fully commercial entity nor as an optimized public utility.

Comparisons with international systems reveal this disparity. The UK separates infrastructure from operations to encourage competition and efficiency, whereas India has bolstered its unified public network through electrification and dedicated freight corridors.

In contrast, Pakistan remains entrenched in a hybrid system that has led to inefficiencies and policy drift, the report concludes.