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.