The Bangladesh Railway sector is trapped in a perpetual cycle of financial losses. Despite increased spending to manage public transportation, revenues have not kept pace, resulting in mounting deficits. The expenditure on running the railway system has now reached more than two and a half times its income. This imbalance is one of the key drivers behind the daily disruptions that plague the railway service, including frequent schedule delays and derailments, which inconvenience passengers. As a result, many people have started turning away from the railways due to the growing number of hardships they face.
According to the Bangladesh Railway’s financial data, the current situation is alarming: for every taka earned, the railway spends two taka 56 paisa. Over the last 15 years, Bangladesh Railways has racked up a staggering loss of around 21,000 crore taka, translating to an average annual deficit of approximately 1,500 crore taka.
Mismanagement, corruption, and a lack of effective oversight have been identified as the major factors contributing to these extensive losses. Despite the government spending over 1 lakh crore taka on railway development in the past, little has been done to improve the speed or the quality of services. Instead, many development projects appear to have been more about enriching individuals than benefiting the public, fueling widespread frustration.
Experts argue that with better monitoring, a crackdown on corruption, and greater transparency in train ticketing and fines, Bangladesh Railways could transform into a profitable venture.
Recent financial reports from the railway sector indicate that, from July to December, the railways earned just Tk 835 crore 74 lakh from various sources, including passenger transport, goods transport, and parcels. However, operational expenses during the same period totaled Tk 2,148 crore, leading to an operating ratio of 2 taka 56 paisa per taka earned. This means the railway is spending more than twice what it earns—a situation that has persisted for years. In fact, according to the “Information Mirror-2022” report from Bangladesh Railway, the sector spent over 290 paisa to earn just one taka in that year.
Mozammel Haque Chowdhury, Secretary General of the Passenger Welfare Association, expressed his concerns, highlighting that international rail experts are needed to manage the sector effectively. According to him, top officials are more focused on personal interests than the well-being of the railway system, while field-level staff are often involved in corruption. These issues collectively push the sector further into debt.
Chowdhury added that the railway authorities have not effectively addressed the problem of ticketless travel, a major source of revenue loss. Experts estimate that eliminating ticketless journeys could bring in an additional 100 crore taka per month. At key stations like Kamalapur and the Airport Railway Station, about 20,000 passengers travel daily without tickets. Despite the presence of dishonest officials who pocket money unethically, legal collection of this fare could generate as much as 8 to 10 lakh taka daily.
Director General of Bangladesh Railway, Md Afzal Hossain, responded by noting that railway fares in the country are significantly lower than road fares, as the government provides subsidies. The last fare hike took place in 2016, but since then, rising costs for oil, technical maintenance, and salaries have made the current fare structure unsustainable. According to Hossain, fares should be doubled to match the increasing costs. With higher fares, the railway could substantially boost its revenue and reduce the gap between income and expenditure.
In addition to fare increases, another significant opportunity for increasing revenue lies in the vast areas of unutilized railway land. Bangladesh Railway reportedly holds around 4,000 acres of vacant land, but efforts to recover and use these lands have been sporadic at best. If these lands were properly managed and utilized, it could significantly boost the railway’s finances.
While the Bangladesh Railway sector remains a critical component of the nation’s transport infrastructure, its financial troubles are far from resolved. With systemic corruption, poor management, and outdated policies continuing to drive the sector’s losses, urgent reforms are needed to ensure that the railway becomes a profitable and efficient public service for the future.
Bd-pratidin English/ Jisan
