ISLAMABAD: Pakistan Railways on Thursday slashed train fares by almost 33 per cent on the directives of Federal Minister for Railways Khawaja Saad Rafique and the new rates will be applicable from July 11.
“Strategic benchmarking is very important in revenue generation as it takes into account both cost and potential revenue, with the objective of increasing profit in the long term”, the minister said on the eve of this announcement.
He added that one common challenge faced by every organisation was how to serve its customers better and the public sector was no exception to it.
Discussing the inter-city competitive public transport rates, the minister added, “Improvement in the system enables better product quality and service differentiation, leading to an increase in sales of the core product or service and higher capacity utilisation”.
The minister said a part of the benefit of the profit so earned would be transferred to the passengers in the form of a decrease in the fares.
Published in The Express Tribune, July 12th, 2013.