Karachi | ReNews Pakistan

Pakistan Railways has decided to offer 10 valuable land parcels in its Rawalpindi Division for long-term commercial development under a public private partnership model as part of its strategy to generate revenue from railway assets and encourage private investment.

Under the proposed arrangement, private investors will be permitted to develop major commercial projects on railway owned land while paying agreed rental charges and other contractual fees to the railway authorities.

According to tender details issued by the Railway Estate Development and Marketing Company (REDAMCO), the commercial development rights will initially be granted for 21 years, with the possibility of a further 21 year extension subject to the applicable terms and conditions. The total potential lease period could therefore extend to 42 years.

The proposed developments may include shopping plazas, commercial markets, corporate offices, retail outlets, factory outlets and other mixed use commercial buildings.

The initiative is intended to transform railway land into revenue generating commercial assets while creating investment opportunities for private developers and businesses.

Under the bidding terms, successful investors will be required to pay a one time, non refundable commitment fee in addition to the agreed annual rent.

The rental amount will increase by 8% annually on a compounded basis, meaning each subsequent increase will be calculated on the revised rent payable in the preceding year.

This arrangement is expected to provide Pakistan Railways with a recurring income stream throughout the lease period. However, the actual financial returns will depend on the final bids, approved rental rates, commitment fees and the terms of the executed agreements.

REDAMCO has invited sealed bids from interested investors and private companies under a single-stage, two-envelope bidding procedure, requiring separate submission of technical and financial proposals.

According to the available tender schedule, the deadline for submission of bids is October 19, 2026, at 2:00 pm, while the technical bids are scheduled to be opened at 2:30 pm on the same day.

A pre bid meeting for prospective investors was also scheduled for October 9 to provide information regarding the project and bidding requirements.

The tender conditions provide a mobilisation period of 24 months from the date of possession, allowing successful investors to undertake preparatory activities and arrange for the development of the proposed commercial projects.

All construction will be required to comply with applicable local building bylaws and relevant regulatory requirements.

Through the initiative, Pakistan Railways aims to improve the commercial utilisation of its property assets without undertaking the entire development investment itself.

The proposed arrangement could generate construction activity, attract private sector investment and create business and employment opportunities in the areas where the commercial projects are developed.

However, the actual commencement of construction will depend on the selection of successful bidders, completion of lease agreements, handover of land and acquisition of the necessary development and building approvals.