Rail fares soared by up to 20 percent

The cash-strapped Pakistan Railways (PR) has increased passenger trains fares from 15 to 20 percent with effect from Thursday to overcome its financial crisis and a notification in this regard was issued here on Monday. The notification said that (a) passenger train fares have been increased by 15 percent (b) all intercity; Mail Express and non-stop trains' fares have been increased for all classes by 20 percent.
All fuel charges have been merged in basic fares of all trains and classes before this increase, the notification added. Sources in the Railways Headquarter told Business Recorder that PR had moved a summery about a week ago to raise the fares of freight and passenger trains by 25 percent; however the government has permitted only 15 to 20 percent. There is no change in the present freight charges.
They said PR management had decided to gradually increase fares both for freight and passenger trains to tide over its deficit budget. The diesel prices had gone up by 35 percent so it was not possible for the national utility to maintain the old fares, he emphasised.
It is expected that after the increase, the travelling between Lahore and Karachi would cost an extra Rs 100 single way. The economy class fare would be increased by 10 percent and air-conditioned class by 15 percent. The fares of Express trains are also being increased by 15 to 20 percent. Information Technology department staff deputed in the Computerisation Reservation Office had been directed to make arrangement to ensure correct feeding of fares in the computers, the notification further said.
They recalled that the government had refused to inject further money in the sick Pakistan Railways and directed to generate its resources for bringing down the annual losses of billions of rupees. "PR has recently taken bank loan of Rs 6.1 billion and started overhauling the engines," said the official, adding the management was also taking some other belt tightening measures to keep a tight leash on its spending.
They said in pursuant of the government's direction PR was trying to streamline its spending and income. It may be added that amid allegations of corruption levelled by the Railways unions, the Railways management is also moving towards private-public partnership. It has introduced two business trains with the partnership of private sector, the first of which has already stared its operations between Lahore and Karachi.
Business Express Trains' Chief Executive Officer Zafar Chaudhry on contact said the Company would not increase its fares despite increase in Railways fares, adding "we have independent management and are not affected by Railway management's decisions."