Pakistan Railways loses $3.5 million annually to fare evasion — minister

Passengers board a train at a railway station on their way home in preparation for the Eid al-Fitr celebration in Lahore on March 29, 2025. (AFP/File)
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  • Fare dodging underscores deeper financial woes for Pakistan’s struggling state-run railway network
  • Government pledges stricter enforcement, new trains, ADB-backed track upgrades to modernize system

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Pakistan Railways, one of the oldest institutions in the country, has faced chronic financial losses, outdated infrastructure and poor service quality for decades.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.”

Abbasi said individuals caught traveling without tickets, as well as railway staff found complicit, would now face imprisonment. 

The minister said the railways’ vigilance department had been tasked with intensifying enforcement measures to reduce losses that have long plagued the system.

In addition to tackling fare dodging, Abbasi outlined modernization plans aimed at reviving the network. Over 200 new locomotives are currently under production at the Islamabad Carriage Factory, part of efforts to revamp the aging fleet, he said. 

Pakistan is also in talks with the Asian Development Bank (ADB) for funding to upgrade the 480-kilometer Karachi–Rohri line, a key artery of the national network. Track improvements are also planned between Lahore and Rawalpindi to boost efficiency and safety, Abbasi added.