Pakistan to allow commercial use of railways infrastructure

The federal government of Pakistan initiated on Friday the necessary legislation to allow commercial use of Pakistan Railways infrastructure.

Under the proposed law, private operators will be allowed to provide services on railway lines. For this purpose, the Transfer of Railways Order, 1962 (Amendment) Bill 2025 was presented in the National Assembly on Friday by Federal Minister for Railways Hanif Abbasi.

The amendment bill introduces changes to clauses 1, 2, and 4 of the Transfer of Railways Order, 1962, and proposes the addition of a new clause, 4-A, which explicitly allows commercial and private use of Pakistan Railways tracks and infrastructure.

The bill permits private operators — both local and foreign — to use the Pakistan Railways network through contracts. Operators will be allowed to run passenger and freight trains on Pakistan Railways infrastructure. The legislation also specifies that the Railway Regulatory Authority Ordinance, 2002, will not apply to such contracts.

Under the proposed amendment, the Railway Regulatory Authority will not have the power to cancel, amend, or alter any agreement. Instead, the Railway Division will have final authority to approve agreements with operators, based on recommendations of the Railway Board.

The aim of these access agreements is to generate revenue, make better use of existing infrastructure, and foster competition. Pakistan Railways will also be responsible for providing staff and other necessary personnel to private operators, monitoring compliance, and mediating complaints.

The objects and objectives of the bill state that the Transfer of Railways Order, 1962, has been amended to create a conducive environment for “track access.” Track access, it notes, is critical for the country’s economic development through regional connectivity.

It further states that, in line with the Mustafa Impex case, certain tasks have been reassigned to the Railway Board to reduce the federal government’s burden.

The amendments also emphasize maximum utilization of railway land and property through lease, license, or concession under the Railway Land and Property Rules, 2023. Redundant provisions regarding Eastern and Western Railways have been removed.