On July 4, 2025, Pakistan Railways (PR) increased passenger train fares by 2% due to a rise in diesel prices, as confirmed by official notifications. Additionally, freight rates for coal rose by 3%, while those for fertiliser increased by 2%.
The recent increase in diesel prices by Rs11.37 per litre is projected to add Rs3.99 million to Pakistan Railways’ (PR) daily costs, amounting to Rs119.5 million monthly, based on its daily consumption of 350,000 litres. Additionally, PR is preparing to relaunch the refurbished Pak Business Express through a public-private partnership (PPP), with the Prime Minister expected to inaugurate it soon.
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The upgraded train will feature enhanced coaches, improved seating, Wi-Fi, and better catering services. Originally launched in 2012, the service was halted in 2015 due to financial disputes. This revival aims to modernise travel between Lahore and Karachi.
PR attributes the hike to rising diesel costs, which strain operations. The government increased the diesel price by Rs11.37 per litre, effective July 1, 2025, following a similar Rs10.39 rise earlier in the month. This applies to express and passenger trains, with freight adjustments for coal and fertiliser. PR consumes 350,000 litres daily, making fuel costs a major expense. 9
