LAHORE, Dec 17: An increase in train fares is on the cards following the recent hike in the prices of petroleum products, Pakistan Railways announced on Friday.

Quoting Railways Minister Mian Shamim Haider, a PR statement said the fresh oil price hike would cost the railways an extra Rs370 million.

"To meet it, the fare will be increased but it (the fare hike) will not be as high as to burden the common man," the statement claimed, but stopped short of mentioning how much the increase would be, and whenwould it take effect.

Claiming to meet the budget target of Rs18 billion for the current fiscal year, the statement said the railways had earned a revenue of Rs7 billion in the first five months.

It quoted the minister as saying that the Pakistan Railways would be converted into a corporation by coming July 1, for which the chairman and the chief executive would be taken from the private sector. The railways board will consist of three members from the government as Pakistan Railways representatives and three from the private sector.

The statement said that the corporation will give a choice to the employees either to continue their services with their present package or opt for the rules and regulations to be laid down by the corporation. The minister, however, said that there would be no downsizing.