Govt freezes Pakistan Railways fares, allocates Rs6 billion subsidy despite fuel hike

Prime Minister Shehbaz Sharif has directed Pakistan Railways to keep passenger fares unchanged despite rising diesel costs, with the government allocating Rs6 billion to cover the impact until June 30.

Officials said the decision applies to all passenger categories, including economy and air-conditioned classes, while freight charges will also remain unchanged to support businesses.

A railway spokesperson said a fare increase of around 30% had been considered necessary to meet operational costs, but the government opted to absorb the financial burden instead.

Railway authorities said the move aims to maintain affordability for passengers and stability in freight services amid rising fuel costs.

The decision comes after a sharp increase in fuel prices, with petrol rising by Rs137 per litre to Rs458.4 following adjustments in global prices and domestic levies.