Published on: August 21, 2025 9:47 PM
Pakistan Railways is losing nearly $3.5 million every year due to fare evasion, Railways Minister Hanif Abbasi revealed on Thursday while addressing reporters in Islamabad.
The state-owned railway system, already facing financial struggles, outdated infrastructure, and declining passenger trust, continues to suffer heavy losses as both passenger numbers and freight revenues drop compared to road and air transport.
Abbasi explained that according to the 2023–24 Annual Report, fare-dodging accounts for around Rs1.1 billion in yearly losses. Despite tighter monitoring, the figure still remains close to Rs1 billion.
The minister stressed that both fare evaders and corrupt railway staff will now face strict punishment, including jail terms. He directed the vigilance department to step up enforcement efforts to reduce revenue losses.
To revive the struggling sector, Abbasi announced major modernization steps. More than 200 new locomotives are being manufactured at the Islamabad Carriage Factory, aiming to gradually replace the aging and inefficient fleet.
Furthermore, Pakistan is in talks with the Asian Development Bank for funding to upgrade the 480-kilometer Karachi–Rohri line, with similar track improvements planned between Lahore and Rawalpindi to boost safety and efficiency.