Pakistan Railways has officially increased the fares of passenger and freight trains to absorb the soaring prices of petroleum products in the country following a hike in the international market.
According to details, the fares of passenger trains, including outsourced trains, have been raised by 10% that will come into effect today while the fares for freight trains have been increased by 5% that will come into effect from 5 November.
Speaking in this regard, Chief Executive Officer (CEO) of Pakistan Railways, Nisar Ahmed Memon, said that since the organization mostly caters to the underprivileged segment of the society, Pakistan Railways has always tried to increase the fares as little as possible.
He clarified that Pakistan Railways had last notified an increase in the fares of both passenger and freight trains in July 2019. Since then, the organization has been trying its best to incur a large part of the burden of the rising prices of petroleum products.
However, after the record increase in the prices of petroleum products on 16 October, Pakistan Railways found it difficult to continue with the fares and ultimately decided to hike the fares.
Other factors that influenced the decision of Pakistan Railways were the depreciation of the Rupee and the rising wage bill.
The depreciation of the Pakistani Rupee against the US Dollar exacerbated the matters for Pakistan Railways to a great extent. Since most parts of the locomotives and coaches are imported, the depreciation of the Rupee resulted in an increase in the prices of these parts.
The incumbent government twice notified a raise in the salaries and pensions of Pakistan Railways’ current and formers; first in 2019 and then in 2020, which also made it difficult for the organization to continue with the previous fares.
To ensure the uninterrupted supply of parts and the wage bill remains intact, Pakistan Railways has increased the fares of passenger and freight trains after over two years.
