A well functioning railway system is crucial for sustainable economic growth. Railways have a definite edge over roads for long haul and mass scale traffic movement, both for passenger and freight, as a safe, economical and environment friendly mode of transport. It not only contributes to economic growth but also promotes national integration. Pakistan Railways was the primary mode of transportation in the country till seventies. However, due to diversion of resources to expansion of road network, the performance of
Pakistan Railway declined and it’s share of inland traffic reduced from 41 percent to 10 percent for passenger and 73 percent to 4 percent for freight traffic. During the last seven years (2000-2007), Pakistan Railways has shown improving trend in both passenger and freight traffic, registering an average increase of 5.6 percent and 8.0 percent per annum, respectively. A positive growth of 5.7 percent and 6.9 percent has been recorded in passenger traffic and freight traffic, respectively during 2005-06. Further, the passenger and freight carried by railways increased by 6.3 percent and 7.0 percent respectively during July-March 2006-07. The positive growth trend for seven consecutive years (2000-2007) can be attributed to the wide range of improvements made by the Pakistan Railways through completion of a number of development projects and better policies aimed at modernization of PR. Pakistan Railways has introduced 9 new train services in Transport and Communications in order to facilitate passengers as well as freight In order to continue improvements and to consolidate reforms, Pakistan Railways has prepared a business plan for 2005-11. The plan places emphasis on encouraging private sector participation in order to increase its competitiveness, responsiveness and efficiency. Pakistan Railway is planning to take a series of interlinked initiatives, which will enable it to compete efficiently in the fast growing transport sector in Pakistan.

Pakistan has awarded a contract to an international consortium to carry out a feasibility study for establishing a rail link with China. A rail link could further boost trade relations between the two countries by facilitating the already growing trade with China and operations of Gwadar Sea Port.

New Trains:

1. Thar Express Karachi-Zero Point 18-02-2006
2. Margala Express Lahore-Rawalpindi 22-05-2006
3. Marvi Express Mirpurkhas-Khokhropar 07-06-2006
4. Sindh Express Lahore-Karachi 24-07-2006
5. Buraq Express Rawalpindi-Karachi 14-08-2006
6. Peshawar Express Peshawar-Rawalpindi 15-12-2006
7. Pakistan Express Rawalpindi-Karachi (Via Hafizabad, Faisalabad and Multan16-12-2006
8. Jinnah Express Karachi-Rawalpindi. 08-01-2007
9. Sir Syed Express Rawalpindi-Karachi 08-03-2007

An amount of Rs. 10.42 billion was allocated to PR development for the financial year 2006-07. The major development schemes under taken were Track Renewal of 221 KM of Rails and 455 KMs of sleepers for the planned main line from Karachi- Khanpur. Twenty locomotives in CKD condition were imported from China, out of which 10 locomotives were manufactured in Pakistan Locomotive Factory. The rehabilitation programme for old locomotives will be continued.