In yet another setback for travelers, Pakistan Railways has officially increased train ticket prices by 2% across all categories. This fare hike applies to Mail, Express, Inter-city, and regular passenger trains. The new fares will be effective starting Friday, July 18, 2025.
This increase comes in response to the recent surge in fuel prices. Diesel rates have gone up by Rs. 11.37 per litre, making operations much more expensive for Pakistan Railways. Since the railway department uses around 350,000 litres of diesel every day, this price hike means they now have to spend an extra Rs. 3.99 million daily on fuel. That adds up to an estimated Rs. 119.5 million in additional monthly expenses, creating serious financial pressure on the department.
To manage these rising costs, Pakistan Railways is also planning to outsource some of its services. This includes handing over the commercial management of certain passenger trains to private contractors. According to a source from the Ministry of Railways, outsourcing parts of the brake and luggage van services over the past three years has helped generate around Rs. 3,959 million in revenue. This mix of direct operations and private partnerships has proven beneficial in boosting earnings.
Even though the department continues to face financial challenges, Pakistan Railways has shown a positive growth in revenue. In the past 11 months, it earned a total of Rs. 83 billion, which is Rs. 6 billion more compared to the same period last year.
Breaking this down further:
- Passenger train services brought in Rs. 42 billion
- Freight trains contributed Rs. 29 billion
- Other sources, such as leasing and special services, generated Rs. 12 billion
This rise in revenue shows that despite fuel hikes and operating difficulties, Pakistan Railways is still working to stay on track by adapting its business model and looking for new ways to manage its costs.
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