The Central Development Working Party (CDWP) postponed a decision after the Ministries of Finance and Planning raised strong objections to a recent proposal.
As of June 30, Pakistan Railways (PR) had received 292 of 820 freight wagons and 78 of 230 passenger coaches, with full delivery expected by June 2026. The Finance Ministry challenged the cost structure, rejecting the ministry’s exchange rate of Rs. 285 per dollar and instead applying Rs. 278 per dollar.
The Planning Ministry noted that repeated delays, bid cancellations, and changes in the Main Line-1 (ML-1) upgrade project under the China-Pakistan Economic Corridor (CPEC) had significantly increased costs and liabilities. Import duties and municipal levies have also risen by 15% over the past five years, adding to PR’s financial burden.
The Planning Commission criticized PR’s inefficiency, urging the organization to enhance operational effectiveness and increase revenue generation.
According to the Finance Ministry, PR’s poor performance led to losses of Rs. 55 billion in FY23, while its market share fell to just 20% in passenger and 4% in freight transportation. To support additional expenditures, the ministry recommended that Pakistan Railways develop a business plan to expand its share in national transportation.
