Islamabad: Pakistan Railways has decided to outsource the operations of 11 passenger trains through an open auction scheduled for November 20, 2025, in a move aimed at improving efficiency, modernizing services and increasing revenue. The initiative replaces the previous bidding system, which officials say had limited participation and yielded lower financial returns.
Open Auction to Replace Old Bidding Model
Under the new system, Pakistan Railways will put up 11 trains for open bidding. These include the Hazara Express, Bahauddin Zakariya Express, Millat Express, Badar Express, Ghouri Express, Rawal Express, Thal Express, Mohenjo Daro Passenger, Fareed Express, Mianwali Express and Faiz Ahmad Faiz Passenger Train.
Officials said the previous system created multiple challenges, as participation remained low and financial bids for some trains were not competitive. For instance, bids worth a total of Rs7.9 billion were received for nine trains, but the federal minister for railways, Hanif Abbasi, cancelled all offers and directed that future outsourcing must be conducted through an open auction to ensure transparency and fair competition.
A Shift Toward Modernization and Transparency
By adopting an open auction model, Pakistan Railways aims to bring more private players into the system, encouraging innovation and accountability in passenger services. The department expects the new process to not only enhance customer experience but also generate higher revenue streams to reduce the organization’s financial burden.
“The open auction will attract more bidders, create a level playing field and ensure that only capable operators manage passenger services,” a senior railways official said.
Expanding Outsourcing Beyond Passenger Trains
In addition to passenger operations, Pakistan Railways also plans to outsource freight wagons, brake vans and the commercial management of its associated schools and hospitals. The broader strategy seeks to make the overall operations more profitable and efficient by involving private expertise in multiple sectors of the organization.
The move signals a wider reform agenda within Pakistan Railways, as the government pushes to transform one of the country’s oldest public institutions into a commercially viable and customer-focused enterprise.
If successful, the open auction model could serve as a template for future partnerships between the public and private sectors in Pakistan’s transport infrastructure.
