Saloon Fare Cuts Signal Railways’ Push for Private Bidders

ISLAMABAD – Pakistan Railways has drastically reduced fares for luxury saloon coaches in a major reform aimed at boosting train profitability and attracting private-sector investment. The fare reductions come as the Ministry of Railways prepares to outsource 11 passenger trains under a public–private partnership model.

On Minister Hanif Abbasi’s instructions, saloon fares were cut across key routes: Karachi–Rawalpindi from Rs 500,000 to Rs 172,000, Karachi–Lahore from Rs 420,000 to Rs 150,000, and Lahore–Rawalpindi from Rs 105,000 to Rs 44,000. Bookings are now available through divisional offices as well as headquarters, making luxury train travel more accessible and improving utilization of previously underused coaches.

Saloons, historically priced at extremely high tariffs, had been treated as a privilege for a few elite passengers, keeping occupancy low and making these services loss-making. The recent fare cuts signal a shift toward market-oriented, revenue-focused operations, removing a major barrier that had deterred private bidders.

Previously, the ministry had relied on sealed bids for outsourced trains, but low participation and below-benchmark offers prompted a rethink. The ministry has now opted for open auction bidding, designed to encourage competitive offers, widen participation, and make contracts more attractive to private investors.

Out of 49 total passenger trains, 12 are already operated by private operators, while 37 remain under state control. Outsourced trains have shown significant profitability, with revenue rising from Rs 3.36 billion to Rs 6.21 billion — an 84.7% increase. Total revenue for Pakistan Railways reached a record Rs 88 billion in FY 2023-24, driven by freight operations, upgraded services, and railway outsourcing reforms.

Challenges remain: 67% of tracks are beyond their operational lifespan, forcing speed restrictions and delays. Over 125 freight derailments in recent years highlight weaknesses in railway infrastructure and signalling. Passenger-train incidents continue to underscore operational risks.

To encourage private investment, the ministry has rolled out additional measures: digital ticketing, refurbished coaches, upgraded dining services, expanded freight operations, and targeted track and signalling upgrades. By slashing fares and improving service, Pakistan Railways is positioning itself as a more profitable and investor-friendly railway system. Fare reductions, coupled with open bidding, signal that the government is serious about turning luxury rail services from elite privileges into commercially viable, high-demand trains.