Pakistan’s railway system is chugging towards a much-needed modernisation. China’s partnership with Pakistan Railways promises a major efficiency upgrade. By the end of the 2025-26 fiscal year, an impressive 820 new wagons will be integrated into the network. This reflects Pakistan Railways’ dedication to modernisation and setting a new standard for the country’s transportation sector.
The collaboration goes beyond just delivering new equipment. Last week, Pakistan inducted 40 high-quality freight wagons manufactured locally through technology transfer from China. This marks a crucial step towards self-sufficiency. The “modern wagons” boast a new design allowing efficient container transport, making them more versatile. Faster delivery times for commercial goods are on the horizon, with speeds expected to reach 100 kilometres per hour, significantly reducing delays.
The economic benefits are twofold. Locally produced wagons reduce reliance on imports and conserve foreign exchange, but are also projected to generate over Rs 9 billion (approximately $32 million) annually.
This is in addition to freight revenue for Pakistan Railways, a much-needed financial boost for the institution. Along with that, a stronger fleet will surely contribute to employment rates, and bolster Pakistani markets by making transport more reliable.
Beyond China, Pakistan’s railway sector is seeing positive developments with Dubai as well. In January, the two countries inked agreements valued at over $3 billion, focusing on cooperation in railways, economic zones, and infrastructure projects. These inter-governmental frameworks aim to strengthen ties in the marine and logistics sectors.
A key project involves establishing a dedicated freight corridor (DFC) – a rail-based route specifically designed for efficient cargo movement. This corridor will run from Karachi Port on the Arabian Sea to the Pipri Marshalling Yard, roughly 50 kilometres away.
The DFC promises to alleviate traffic congestion in Karachi, improve overall road efficiency and transport times, and most importantly, drastically reduce logistical costs. This translates to smoother movement of goods and potentially lower prices for consumers.
China and Dubai’s investments represent a significant step forward for Pakistan’s transportation infrastructure. Increased efficiency, technology transfer, and dedicated freight corridors all contribute to a more robust and cost-effective system.
