A freight train accident due to a "technical fault" has resulted in major oil spillage in Nawabshah, Aaj News reported on Sunday.

Pakistan Railways said the compartmental joints of the freight train unlocked in the vicinity of Nawabshah, causing the oil to spill. Officials have confirmed that the train was carrying thousands of litres of oil.

The furnace oil lost in this accident was valued at around Rs5-6 million. Officials also stated that despite efforts, all the oil was lost within three hours.

The Railway authorities dispatched a technical team, which reached the location of the spill and are investigating the circumstances behind the accident.

Police officials have tightened security around the area, and are advising citizens to stay away from the site.

Railway accidents are common in Pakistan that has under-invested in its transport and logistics infrastructure. The state-owned Pakistan Railways, which handles the associated rail network, continues to be a loss-making entity.