Pakistan Railways is implementing a new Premium class level and new coaches on its entire national railway system, which is the biggest improvement to date by the state-owned railway in terms of providing a better experience to passengers. The Pakistan Railways Premium Class Upgrade focuses on the basic problem of why people prefer roads and flights over railway services.
What the Premium Service Offers
The upgrading of the Pakistan Railways premium service is not just about making aesthetic changes but involves fixing the flaws in the system which made people prefer not using trains. The core element of the project lies in modern coaches which will offer better facilities for passengers compared to what they see in other countries’ rail systems in the region.
For those who have traditionally identified Pakistan Railways with being unreliable and uncomfortable, the premium service is a clear effort to alter their perceptions of the railway company by offering a high-quality service experience.
Three Motivations for the Upgradation
There are three intertwined strategic motivations for the upgradation of the premium service of Pakistan Railways:
Passenger comfort and experience
Upgrading of coaches, premium class seat arrangements, superior catering service and proper climatic control system rectifies the comfort problem that makes the middle class and upper class passengers opt for alternative means like road and air. It is necessary for the retention of these high value customers.
Expansion of railway’s transport market share
Pakistan’s railway has less market share than it should normally have according to its geographical scale. It has been losing market share to road because of its lack of flexibility, reliability and above all comfort. The upgradation of Pakistan Railways’ premium service directly attacks the problems of reliability and comfort which have been the cause of loss of market share to roads.
Financial improvement
Premium services earn better per passenger revenue from the same infrastructure. A passenger that pays the premium fare on a modern coach earns much more revenue for the railway than a standard class passenger who travels in an aging coach without the need of a proportionate increase in the costs.
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Infrastructure and Partnership With the Private Sector
Upgrading the premium service of the Pakistan Railways is not based only on the government funding. The project envisages partnership with the private sector as an implementation method — involving the private capital, business acumen, and management in a railroad which had failed to perform within a purely governmental framework.
Infrastructure upgrading is needed to facilitate the implementation of the premium service; since it is necessary to improve the track infrastructure, stations, and signaling to be able to provide passengers with a premium experience by using comfortable coaches. A premium coach operating on poor infrastructure cannot offer a premium experience.
A Broader Context – The Pakistan Railways At a Crossroads
According to the report of the Auditor General, in FY25, Pakistan Railways had suffered cumulative losses of over Rs61 billion, a 65 percent loss in the operating ratio, and an estimated liability of Rs358 billion. The need for premium service for Pakistan Railways is not just an option; it is a necessity.
Every citizen of Pakistan who travels 12 hours from Karachi to Lahore in his/her car or takes a flight from any domestic airline on a journey where rail transport is an option means that Pakistan Railways has lost potential income due to poor service provided to the travelers.
Nayab Fatima is a media professional specializing in fact-based journalism, research, and analytical reporting on technology, telecom, aviation, and automobiles.
