Bangladesh Railway Revenue Grows Nearly 12% Amid Calls for Fare Revisions

Bangladesh Railway's revenue grew by 11.9% to Tk2,066.38 crore in the 2025–26 fiscal year. This marks an increase of Tk221 crore from the previous year's earnings of Tk1,845 crore.

Passenger services drove this financial growth, generating an additional Tk256 crore. The railway also saw modest gains of Tk11.52 crore from optical fibre leasing and Tk3 crore from land and property. However, a locomotive shortage caused freight revenue to drop by Tk8.34 crore, and commercial income fell by Tk24.34 crore.

Despite the higher earnings, operating expenses reached Tk3,955 crore. The operating ratio—the measure of expenses against revenue—improved from 2.09 to 1.91, reflecting a narrowing deficit. The state-owned agency noted that its Tk1,000 crore annual pension payout shouldn't be classified as a direct operating expense.

When excluding pensions, the operating ratio drops to 1.43, meaning operational costs still exceed revenue by 43%. The railway emphasized that passenger fares have remained subsidized and unchanged since 2016, despite surging costs for fuel, maintenance, salaries, and imported equipment due to a stronger US dollar.

Officials argued that updating fares to match current market conditions would substantially close the deficit, stating the railway should be viewed as an essential public transport service rather than a "loss-making organisation".