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Friday, July 12, 2013
Pakistan Railways reduces fares by up to 33 percentISLAMABAD: Pakistan Railways on Thursday announced reduction of 33 percent in rail fares on the directive of Federal Minister for Railways Khawaja Saad Rafique.
“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 said.
He said that one common challenge faced by every organisation 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 utilisation”.
It was observed that some railway routes had potential with respect to revenue generation; therefore, in order to enhance the profit margins of Pakistan Railways through expansion of sales, it has been decided to reduce the fares, he said.
The minister said that part of the benefit of the profit earned would be transferred to the passengers in the form of a decrease in the fares. “Railways would 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 utilised optimally, the minister said.
“In lieu of this move, there is going to be an almost 33% reduction in the fares of Jaffer Express by Pakistan Railways for a period of three months initially, meaning thereby an enormous saving of Rs 410, Rs 310 and Rs 160 in the fares of Business, Standard and Economy Classes, respectively,” Rafique said. 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 July 11, 2013. There will be an almost 17% to 30% reduction in the fares of Islamabad Express. app
Courtesy www.dailytimes.com.pk