10% fare hike in express trains: Saad Rafique

Minister says KCR has to revise design to cut $3b jump in cost; discloses ML-1 project cost swells to $9.9b

LAHORE:

Federal Minister for Railways Saad Rafique has announced that fare for express trains would be increased by 10 per cent while freight rates would see a hike of 15 per cent in view of the recent jump in fuel prices.

According to a railways notification, freight and parcel rates would be raised by 15 per cent while fares of mail, express, intercity trains and saloons would rise by 10 per cent from 17th June.

However, the railways minister said fares for normal passenger trains would see no increase to reduce the financial burden on low-income commuters. "Rising fuel prices are causing a fiscal loss of Rs8 billion annually or Rs740 million monthly to railways," he told reporters at a press conference at Railways Headquarters.

Saad Rafique said the hike in fares would result in a saving of Rs1 billion to the railways. He said the current revenue of railways was Rs53.3 billion while its deficit was more than Rs37 billion which was likely to swell to Rs45 billion.

Similarly, the Railcop subsidiary, which was running on a profit of Rs400 million in his previous ministerial tenure, suffered a loss of Rs9 million last year.

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The minister blamed the previous government for corrupting the railway system, saying decisions were taken in Islamabad instead of the railways headquarters in Lahore. He said the previous government had no answer to why the cost of ML-1 project had risen to $9.9 billion from $6.6 billion.

"Around 21 power vans are out of service for lack of repairs but nobody paid any attention," he said.

Saad Rafique said the much-delayed Karachi Circular Railway project would be his first priority in discussions with the Chinese government. "KCR was to be built on the lines of Orange Line in Lahore under CPEC projects but the previous government demanded it to be reverted to the old design."

The KCR project has to change its design to bring down costs which had risen by $3 billion, the minister said.

The minister revealed that railway pensioners were not being paid their pension for the last two years. "We will form a committee to clear the pension cases of 2021 and 2022," he announced, adding there would be no interference of any minister or officer.

Saad Rafique reiterated that his ministry would offer a job to a woman raped recently on a train and would also compensate her financially. "We will follow up on the rape case and get the culprits sentenced and if needed would engage a counsel on behalf of railways."

He clarified that no decision had been taken about installing CCTV cameras inside trains. Responding to a question about Royal Palm Club in Lahore, Saad Rafique said his ministry would act in light of the Supreme Court judgment.