Train fares hike

The government has announced a 10% and 5% increase in passenger fares and freight charges, respectively, from this month, justifying the hike in fares due to rising prices of petroleum products. The increase in charges will apply equally to trains being managed by the private sector. The financial health of Pakistan Railways has been unsatisfactory for the past many years as is evident from the fact that it has suffered a huge loss of more than Rs1.9 trillion over the past three years. The latest increase in passenger fares and freight charges will not only further burden the poor travelers and add to the already awful price hike but will likely turn away goods traffic and passengers from the railways.

The outlook for the Pakistan Railways in the near future might not be positive. It is common knowledge that corruption and mismanagement have brought the railways to their present state. People prefer to travel by railways because of the comparatively lower fares than other modes of transportation, as well as comfort and ease they find in trains. The rising fares, poor maintenance, lack of facilities and the late running of trains are gradually taking people away from railway journey.

The hike in freight charges too will make businesses prefer transportation of goods by trucks and trailers. A former minister of railways is on record having said a few years ago that now the railways has a mere 2% freight traffic in its hands. One important reason for the growing attraction for transporting goods by road is that truck and trailer operators deliver the goods on time. The preference for transferring goods by road does not need much explanation. Obviously, there are elements of corruption and mismanagement. Falling revenues from passenger trains are mainly attributable to chronic late running of trains and lack of facilities. Moreover, the management of several trains has been handed over to the private sector. We are never told whether the privatised trains have improved or deteriorated the railways’ revenues