In order to enhance the profit margins of PR through expansion of sales, it has been decided to reduce the fares, said Saad Khawaja Rafique. – File Photo
In order to enhance the profit margins of PR through expansion of sales, it has been decided to reduce the fares, said Saad Khawaja Rafique. – File Photo

ISLAMABAD: The Pakistan Railways on Thursday announced a substantive reduction of 33 per cent in rail fares on the directives of Federal Minister for Railways Khawaja Saad Rafique and the new rates will be applicable from July 11.

Strategic benchmarking is very important in revenue generation as it takes into account both cost and potential revenue, with the objective of increasing profit in the long term,” said the minister.

He said that one common challenge faced by every organisation was how to serve its customers better and the public sector was no exception to it.

Discussing the inter-city competitive public transport rates, Rafique said, “Improvement in system enables better product quality and service differentiation, leading to an increase in sales of the core product or service and higher capacity utilisation.”

It was observed that some railway routes had potential with respect to revenue generation, therefore, in order to enhance the profit margins of Pakistan Railways through expansion of sales, it has been decided to reduce the fares, he said.

The minister said a part of the benefit of the profit so earned would be transferred to the passengers in the form of a decrease in the fares.

The objective behind this move is to run the corporation on professional and commercial pattern so that the utility of railways, being an economical carrier may be utilised optimally.

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Comments (12) (Closed)


sher khan
Jul 12, 2013 02:13am

It's a good thoughtful step, which may usher new wave of generation of profit for our dying railway service...But a million dollar question, which no one has ever been able to address is to give due consideration to bring back the 'Railway carriage service' as this could be a real game changer, as this particular segment of railway, which could've been a great revenue generation source, is being neglected by all predecessors, and to my gut feeling, this incumbent minister won't be a different than many others , who all have played havoc with this amazing department, whose vary core existence has been mutilated by all previous ministers, usually marred by nepotism, that too of different kinds...And unexpectedly, not a single case of corruption and embezzlement done by Mr.Bilor has been taken into consideration, not even a rehtoric statement to do so has been aired by this incoming minister( it really amazes me, seemingly this new government has given an undertaking to previous government that they won't open a single case of massive corruption and looting, just give us our turn to take over the government, rest all is to be forgotten) , who has no clue to run a formidable railway industry has done whatever it takes to bring this department to the brink of destruction and I yet to understand how this wonderful department sustained all unprecedented forms of abuses being done rampantly by this person !!!

Leo Abbasi
Jul 12, 2013 02:27am

Good move this should effect because it's a law of supply and demand you reduse the prise the demand would increase but there is a problem! people after this also wont buy tickets sir because of the situation they face after buying a ticket. i am a student at sindh university i had to go to jamshoro we friends decided to go by train they said we would give 100 or 150 to some police man at the train per person and we would be easily there every one said that is a good idea but i baught a ticket and after it created a problem for me that where to sit a seat i reserved some one was sitting on it so i took a seet a sleeping seet that is above the seat for sleeping and sat on that down by seat there a complete family was sitting all the family had talked to the police man and have paid money directly to police man only one of them had baught a ticket and was sitting with them after a police man came and said to the man to get up and asked for the ticket he had the ticket so police man said go and sit at the place you are given the seat at he said this is my family let me sit whith them police man shouted and said then why the hell did you boy the ticket now face the consiquences police man called another police man and made the man with the ticket go to the seat he got issued they behaved very badly with the person who had the ticket like he was the one with out ticket police man i was seeng and feeling that if they had the power they just would have killed the man with the ticket they were just barking at him because he had baught the ticket and didnt cooporate with them and didnt give hundred to them. police even provided the people fake tickets on the way to karachi from larkana this money dont go to not even one persent of it go to the government then what happens if some gets 33% ease at fair nothing a system should be set to stop these corrupt officiels the corruption

DK
Jul 12, 2013 03:26am

Getting nowhere just got cheaper.

Max
Jul 12, 2013 03:44am

At least a good decision , real world economies work on less margin and more sales which is good for the business as more turnover means good revenues and proper use of stock . Well done Nawaz Govt . Do the same for beleaguered PIA and other institutions , bring competition and price wars to improve sales .

Ahmer
Jul 12, 2013 04:39am

Privatising the PR is the only way to keep trains running in Pakistan.

Muhammad Bilal
Jul 12, 2013 07:32am

These guys have no idea what they are doing. Does he have capacity to accommodate more people? Does railway have capacity to serve more people? Is Railway already a profitable organization that has enough money to pass on the benefits to the end user?

Why don't they capitalize on the idea of PPP(Public Private Partnership) which previous Government has already pilot tested successfully with the train service between Lahore and Karachi. It has been generating profit and paying back to the Railways.

The Government should always work on the platform and let others use it to provide services to the end customer. Government gets paid in return and the private company takes care of the quality of the service to the end customer. Is that rocket science?

MK
Jul 12, 2013 04:03pm

Seems to b a gud dcision but its only for trains running b/w Lhr n Rawalpindi.. Why not to other routes? specially from Pindi/Peshawer to Karachi/Quetta ?? Loss of railway will be reduced by ruuning more trains, not by reducing fares

MK
Jul 12, 2013 04:03pm

Seems to b a gud dcision but its only for trains running b/w Lhr n Rawalpindi.. Why not to other routes? specially from Pindi/Peshawer to Karachi/Quetta ?? Loss of railway will be reduced by ruuning more trains, not by reducing fares

Akhtar Rasheed Mallick
Jul 12, 2013 05:41pm

Good Work. I have already suggested on the PMLN site that the u guys re the only who have the capacity to run the show in Pakistan. No other party is ready yet to do the same. Only Air conditioned trains should be introduced in Pakistan. There is no room for old system in our life. All the best waoa, Cargo train should be started right away to may the PR profitable.

Khwaja Aftab Shah
Jul 13, 2013 04:06am

Transporters from all provinces have been the members of Railway Advisory Committees for years who influence the Timetable of railway for their benefit. Previously a transporter was the minister of Railway. Good Luck Pak. Railway.

Muhammad Hashir
Jul 13, 2013 08:26am

what is condition of business train?

Waheed Uz Zaman Tariq
Jul 14, 2013 07:29pm

I must appreciate this gesture. Much more in needed in this respect; in terms of easy ticketing and discouraging their sale in black, I time schedule, comfort during the journey and suitable timings. Engines and boggies related peoblems might not be discussed here. Railway is still popular in the world and the freight is carried by it throughout the world. India has improved its system and it is running very smoothly there. We have had a great deterioration over the decades and have been systematically attacking and detroying railways system and its property. It needs a lot to be done in the right direction till the confidence is restored.