Pakistan railways sees major revenue boost from Lahore warehouse auction

Pakistan railways sees major revenue boost from Lahore warehouse auction

LAHORE: Pakistan Railways has achieved a major financial breakthrough by successfully completing the auction of 125 warehouses at Badami Bagh in Lahore, following the directives of Prime Minister of Pakistan.

According to Pakistan Railways Headquarters, the auction has significantly increased the department’s expected annual income from the warehouses. Revenue from the Badami Bagh warehouses is projected to rise from Rs72.2 million to Rs331.08 million annually, representing a record increase of 358.6 percent.

The new leasing arrangement will also provide Pakistan Railways with Rs277.72 million in security payments for one year, which will be received as a lump sum. As a result, the auction is expected to generate a substantial improvement in the department’s immediate cash flow, with a reported 743.5 percent increase compared with the previous year.

Pakistan Railways estimates that the leasing of the 125 warehouses will generate total revenue of Rs608.80 million during the first year. The development is being described as an important step towards improving the financial position of the national railway service and making better use of its commercial assets.

The auction forms part of efforts to increase revenue through the effective utilisation and transparent leasing of Pakistan Railways’ properties. The department said the process was completed successfully in line with the government’s directions.

Federal Minister for Railways Muhammad Hanif Abbasi congratulated the railway administration on the successful auction and appreciated its efforts to improve revenue generation.

The minister said national interest and transparency would remain the department’s priorities and assured that no compromise would be made on either matter.

The latest auction is expected to strengthen Pakistan Railways’ non-fare revenue while improving the financial returns from its commercial properties. The significant rise in annual income and upfront security receipts could also provide additional financial support for the department’s operational requirements and future development initiatives.