Pakistan Railways has decided to increase the fares by 10 to 20 percent from February 1, 2011 to meet its operational expenses said General Manager Ishfaq Khattak after attending a high-level official meeting here at Railway Headquarter. He said that this raise would generate additional revenue of Rs 2.30 billion annually.
Khattak said, "the hike in rail fares is being finalised, under which fares of passenger trains would be increased by 10 percent, express trains 15 percent, non-stop 20 percent, freight trains 20 percent and inter-city 15 percent." He said the Cabinet had approved increase in rail fares in July last year, adding that the decision was later reversed. He said the government approved it again and the ministry will issue a notification in this regard soon.
Highlighting the Railways' precarious financial condition, the GM said that even the State Bank had declined to extend an overdraft facility, contending that the railways had already borrowed Rs 40 billion from government banks to meet its operational expenses. He further said out of 500 locomotives only 156 locomotives are operational and due to lack of funds government is unable to buy or repair further locomotives. He said that PR has had to suspend train services in some parts of the country to curtail losses.
Khattak said there were 800,000 employees working in the Railways and 20,000 of them were surplus. He said the minimum distance limit has been increased from 20 kilometres to 40 kilometres. The minimum fare for economy class would be Rs 25 and that of second class Rs 20 he added.
Khattak said keeping in view the hike in POL prices and increase in the salaries of employees, revision of rail fares had become inevitable. He said that increase in fares has been made in accordance with trains' service while taking into consideration the financial limitations of the common man. Rail fares were not increased after 2008 when the diesel was less than Rs 50 per litre. Hike in electricity and gas charges besides 50 percent rise in the salaries of employees increased financial burden on Railways.
"Even after increase, freight charges are comparatively less than the market rates. But we have nominally increased freight charges and consider revision of the same," Khattak said. Meanwhile, Railway Union leaders condemned the increase in fares and termed it a bombshell on already poverty stricken masses. Vice-president Prem Union Shaikh Anwar said in a situation where passenger trains were running in losses and majority of people were not ready to use trains due to poor facilities, the decision to increase fares would drive the remaining people off trains.
The government's lack of interest in the revival of the utility also compelled the rail management to announce in rail fares, he added. The railway infrastructure worth Rs 18 billion had been destroyed during the protests after killing of Benazir Bhutto. The government has not paid any attention towards restructuring of infrastructure beside the recently announced bailout package of Rs 11.1 billion has not still been provided by the government, he added. Another leader of Railway Union Open Line Aashiq Chaudhry said that when the trains have no facilities, the decision was indefensible.
First of all, the management should provide facilities and later should raise the fares, he maintained. In fact, the authorities have decided to hit rail users rather than to bring the department out of crises, he added. The people travel through train due to its being cheap mode of transport, but the increase would deter greater use of rail travel, he maintained. The union leaders were of the view that the announcement also represents a major U-turn by the democratic government, which claims to be the true representative of the poor.