The Economic Survey for fiscal year 2024-25 reveals a mixed performance in Pakistan’s transport and communication sectors. While Karachi Port showed growth in cargo and container handling, and Pakistan Railways posted improved earnings, challenges remain in other areas.
Cargo handling at Port Qasim dropped by 1.6%, and the number of National Highway Authority (NHA) projects fell from 123 to 105, signaling a slowdown in infrastructure development. Despite these setbacks, transport and communication continue to be a key focus in the government’s development agenda.
The Public Sector Development Programme (PSDP) for FY 2024-25 allocated Rs161.26 billion for NHA projects, which includes Rs149.28 billion for ongoing works and Rs11.98 billion for new projects. This is a slight increase in funding compared to the previous year’s Rs156.50 billion, though it supports fewer, potentially larger or higher-impact projects.
The NHA currently oversees 48 national highways, motorways, and strategic roads, spanning 14,480 kilometers. Although the number of projects decreased, the overall allocation has seen a modest increase, reflecting a shift towards more focused and impactful infrastructure development.
Pakistan Railways, operating a fleet of 449 locomotives over 7,791 kilometers, reported a notable improvement in its gross earnings, which reached Rs65.17 billion in July-March FY 2025, up from Rs53.7 billion in the same period the previous year.
Pakistan International Airlines (PIA) also saw mixed results. Its operating revenue declined by 16.8% in CY 2024, falling to Rs204.16 billion from Rs238.5 billion in 2023. However, through cost-cutting measures, PIA reduced its operating expenses by 20.8%, reporting an operating profit of Rs9.3 billion, a rare positive despite the revenue decline.
The overall performance of the transport and communication sector in FY 2025 showed moderate progress, with a Rs268 billion government allocation supporting key players like NHA, Pakistan Railways, and Pakistan National Shipping Corporation (PNSC), especially under the China-Pakistan Economic Corridor (CPEC) and regional connectivity initiatives. However, fiscal constraints and delays hindered faster growth.
According to analysts, consistent service across road, rail, maritime, and postal networks has maintained vital connectivity. Future growth depends on faster execution of strategic projects aimed at reducing transport costs, digitizing supply chains, and adopting energy-efficient solutions. Key investments in high-speed corridors, digital infrastructure, and cross-border trade routes are seen as essential for improving efficiency, attracting private investment, and enhancing Pakistan’s role as a regional trade and logistics hub.
The Pakistan National Shipping Corporation (PNSC) operates 10 vessels with a combined capacity of 724,634 DWT. PNSC’s profit fell to Rs8.98 billion during July-March FY 2025, down from Rs14.28 billion in the previous year, attributed to a reduction in the fleet size.
Port Qasim Authority handled 33.8 million tonnes of cargo during the same period, a decrease of 1.6% from the previous year’s 34.3 million tonnes. In contrast, Karachi Port saw growth, with cargo and container handling increasing to 40.4 million tonnes, up from 38.9 million tonnes in the previous year, demonstrating resilience in maritime operations.
