LAHORE – Pakistan Railway has announced an increase of two percent in fares of passenger trains following a sharp surge in diesel prices in recent fortnightly review.
The railways has also jacked up coal freight charges by 3 percent and fertilizer freight charges by 2 percent.
An increase of Rs11.37 in diesel prices has resulted in an additional daily burden of Rs3,986,500 and a monthly burden of Rs119.5 million on Pakistan Railways.
On average, the Pakistan Railways system consumes 350,000 liters of diesel daily.
Meanwhile, Pakistan Goods Transporters Association dropped financial bombshell, announcing 20pc increase in freight charges, with container fares on major routes surging by over Rs1lac.
Industry people said government’s relentless surge in petroleum prices crippled transport industry. Add to that growing number of toll plazas by the National Highway Authority and steep motorway fines, and transporters are left with no choice but to raise fares.
New Transporters’ fare structure
| Route | Old Fare | New Fare | Increase |
|---|---|---|---|
| Lahore to Karachi | 100,000 | 120,000 | 20,000 |
| Lahore to Peshawar | 80,000 | 96,000 | 16,000 |
| Lahore to Rawalpindi | 60,000 | 72,000 | 12,000 |
| Karachi to Lahore | 300,000 | 350,000 | 50,000 |
| Karachi to Peshawar | 400,000 | 500,000 | 100,000 |
| Karachi to Rawalpindi | 400,000 | 500,000 | 100,000 |
Unless government reverses its policies, especially the unchecked expansion of toll plazas, there’s little hope for transporters to stabilize prices.
The fare hike is expected to trigger domino effect on prices of essential goods, as businesses inevitably pass on the increased transport costs to end consumers. Experts warn of inflationary pressure building in supply chains, with middle- and low-income groups expected to bear the brunt.
The transport sector has long been viewed as a barometer of broader economic health, and with freight rates blasting past the one-lac mark, that barometer is flashing red.
