Minister hints at up to 8% increase in railways fares

Railways Minister Khawaja Saad Rafique on Tuesday hinted at increasing rail fares from 7% to 8%, following the new raise in fuel prices and financial crunch in the department.

Addressing a news conference at the Railways Headquarters, Rafique said that diesel bill of Pakistan Railways had already reached Rs38 billion and the department was not able to afford an additional Rs5 billion under the head of increased fuel prices announced by the government this weekend.

He said that railways was facing financial crunch due to floods which disturbed the budget, leaving damages of billions of rupees, adding that the railways needed immediate financial injection of Rs40 billion to meet pension and salaries shortfall and the federal government would be requested next week in this regard.

He said that salaries of railway employees were being paid in five schedules on 1st, 5th, 10th, 15th and 25th dates of every month while this month two schedules of 15th and 25th dates could not be followed.

However, Rs930 million had been released while the remaining amount of Rs310 million would be paid on Wednesday (today) to clear all salaries, he added.

The minister said that railways was trying to find its own means of earning by giving agricultural land on short-term lease, hoping that branding initiative would also generate income in coming days.

He claimed that no one had bothered to fully read the Supreme Court's order and some 2,600 shops along its network across the country were not leased, which caused a loss of millions to the railways.

He said that with the relaxation secured from the top court, tenders had been invited for leasing out these shops.

On the political scenario, he said that no doubt inflation was unbearable but these first eight months of the government were of “fire fighting”, adding that the country needed to do more to avoid default.

He hoped that the situation would be improved with the arrival of oil from Russia. All civilised nations close markets at 6pm, but here in Pakistan, the scenario was quit different, he said, advising that the nation would have to change its habits for progress and prosperity of the country.