ISLAMABAD: Pakistan’s state-run railway network, a crucial but struggling mode of transport for millions in the South Asian nation, is losing about $3.5 million each year to fare evasion, the country’s railways minister said on Thursday.
Pakistan Railways, one of the oldest institutions in the country, has faced chronic financial losses, outdated infrastructure and poor service quality for decades. Passenger volumes have declined due to competition from buses and airlines, while freight revenues have dropped sharply as businesses increasingly rely on roads.
Experts say the sector requires sweeping reforms, from upgrading tracks and locomotives to strengthening oversight of corruption and mismanagement.
“According to Pakistan Railways’ Annual Report for 2023–24, the department was incurring losses of Rs1.1 billion ($3.5 million) annually due to non-paying passengers,” Minister for Railways Hanif Abbasi told reporters in Islamabad.
“Thanks to stricter monitoring, this figure has slightly improved, but the loss still stands at around Rs1 billion per year.”
