Awam Express Outsourced to Private Operator
The Awam Express outsourced its commercial management to private operator AA Enterprises, Pakistan Railways announced on Monday. Railways Minister Hanif Abbasi unveiled the step at a ceremony at Rawalpindi Railway Station, handing the Peshawar-Karachi train’s commercial side to the private firm as part of the railway’s push to improve passenger services and expand public-private partnerships.
The minister put the railway’s revenue at Rs115 billion, up from Rs88 billion, and said it had crossed the Rs100 billion mark for the first time. The figure points to the financial pressure behind the outsourcing drive, since the railway needs new income without adding to its own payroll.
What the handover covers
The agreement covers commercial management, not the running of the trains themselves. The private operator takes charge of the commercial side, such as ticketing, on-board services and cleanliness, while Pakistan Railways keeps providing the railway service.
The model follows the pattern set in June, when Pakistan Railways handed the commercial management of five passenger trains to private partners for about Rs10.75 billion. The trains in that deal were the Awam Express, Millat Express, Karakoram Express, Mianwali Passenger and Narowal Passenger. Officials described the agreements as the largest outsourcing initiative in the railway’s history.
Awam Express outsourced after a long build-up
The Awam Express has been on the outsourcing list for months. In March, the minister announced that nine passenger trains would be outsourced through a transparent and open auction, with the move expected to bring about Rs5 billion a year to the railway.
The minister also directed officials to prepare a plan to modernise the Awam Express and turn it into a premium service. Under that proposal, the train would get 40 new passenger coaches, free wi-fi, standard quality food and a clean environment.
In October, Pakistan Railways confirmed that four major trains, including the Awam Express, Millat Express, Mianwali Express and Karakoram Express, would go to the private sector to improve efficiency and service delivery. Monday’s ceremony at Rawalpindi station turned that plan into a working arrangement for the Awam Express, with AA Enterprises taking charge of its commercial management.
Revenue crosses Rs100 billion
The revenue figure the minister quoted is the clearest sign of why the railway is pressing ahead. Income rose from Rs88 billion to Rs115 billion, and the crossing of the Rs100 billion mark is a first for Pakistan Railways.
Outsourcing is only one part of the wider effort to lift the railway’s finances. The government is also seeking a $1.7 billion loan from the World Bank, despite earlier breaches of loan terms. At the same time, Thar coal is replacing imported fuel at power plants, which eases pressure on foreign exchange.
Transport links are changing across the country. South Air has started a Peshawar-Lahore flight service, and Karachi’s Shershah kabari market keeps factories supplied with scrap and parts. The Express Tribune reported the Awam Express ceremony. For passengers, the test will be simple: cleaner coaches, better food and a smoother journey on the Peshawar-Karachi run.
Frequently asked questions
Which train has been outsourced?
The Awam Express, which runs between Peshawar and Karachi. Its commercial management has been handed to AA Enterprises.
What does commercial management mean?
The private operator handles the commercial side, such as ticketing, on-board services and cleanliness, while Pakistan Railways continues to run the train service itself.
How much has Pakistan Railways’ revenue grown?
Railways Minister Hanif Abbasi said revenue rose from Rs88 billion to Rs115 billion, crossing the Rs100 billion mark for the first time.
Was the Awam Express the only train in the outsourcing plan?
No. In June, five trains were covered by agreements worth about Rs10.75 billion, including the Awam Express, Millat Express, Karakoram Express, Mianwali Passenger and Narowal Passenger. In March, the minister had announced plans to outsource nine trains.
