Islamabad, July 11, 2013 (PPI-OT): Federal Minister for Railways, Kh. Saad Rafique has said that 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. The Minister stated this while announcing reduction in rail fares here today.
The Minister said that one common challenge faced by every organization was how to serve its customers better and the public sector was no exception to it. Discussing the inter-city competitive public transport rates, the minister 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 utilization”.
It was observed that some railway routes had potential with respect to revenue generation; therefore, in order to enhance the profit margins of Pak Railways through expansion of sales, it has been decided to reduce the fares. A part of the benefit of the profit so earned shall be transferred to the passengers in the form of a decrease in the fares.
Railways shall work on a two pronged policy in this regard to create a win-win situation, for its customers i.e. the passengers as well as the corporation itself. 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 utilized optimally.
In lieu of this move, there is going to be an almost 33% reduction in the fares of Jaffar Express by Pakistan Railways for a period of three months initially, meaning thereby an enormous saving of 410/- PKR, 310/- PKR, 160/- PKR in the fares of Business, Standard and Economy Classes respectively.
As far as the reduction of fares of Islamabad Express and Rail Car, the decrease is for a period of 15 days initially w.e.f 11th July, 2013. There will be an almost 17% to 30% reduction in the fares of Islamabad Express, meaning thereby a saving of 150/- PKR, 120/- PKR, 130/- PKR in the fares of AC Parlor, Standard and Economy Class respectively, providing a maximum relief to the economy class passengers i.e. 30%. Regarding the new rates of Rail Car There is going to be an almost 10 % reduction in over all fares, meaning thereby a cutback of 80/- PKR, 60/- PKR, 30/- PKR in the fares of AC Parlor, Standard and Economy Class respectively.
For more information, contact:
Haji Ahmed Malik
Principal Information Officer
Press Information Department (PID)
Tel: +9251 925 2323 and +9251 925 2324
Fax: +9251 925 2325 and +9251 925 2326