Transporters raise fares across country

Business Recorder

10-07-2025

ISLAMABAD: Following the consistent increase in petrol and diesel prices, transporters across the country have raised fares, adding further burden on the public.
Intercity transport fares have seen an increase of up to Rs50-500, while Pakistan Railways within past one month has twice notified an increase in passenger, express trains, and mail trains' fares owing to increase in the diesel prices. Moreover, the Pakistan International Airlines (PIA) has also increased domestic and international fares.
According to a notification issued by the Pakistan Railways, a two percent fare increase has taken effect from July 4, for express and passenger trains. The two percent fare hike has also extended to advance bookings as per the notification. The PR on June 18 also increased passenger train fares by three percent, while freight train fares by four percent.
The private transporters plying buses between Karachi-Islamabad has increased the fare of normal bus service by Rs400 from Rs6,400 to Rs6,800, business class from Rs8,000 to Rs8,500 and sleeper bus from Rs9,500 to Rs10,000 per passenger. As per the latest fare revisions, the bus operators have increased the bus fare from Lahore to Islamabad from Rs2,000 to Rs2,200 for normal bus service, from Rs2,750 to Rs3,000 for business class and from Rs3,500 to Rs4,000 for sleeper.
The bus fare from Islamabad to Mansehra has gone up from Rs900 to Rs1,000, while the fare from Islamabad to Jehlum also went up from Rs1,300 to Rs1,500. Bus and coaster fare from Islamabad to Naran increased from Rs1,500 to Rs1,700.
Moreover, local transports including taxi, rickshaws, mini bus, online taxi services and bike riders have also increased the fares in the range of five to 10 percent. A rickshaw charging Rs300 from Faizabad to Raja Bazaar now takes minimum Rs330. Similarly, online taxi charging Rs500 from Zia Masjid area to Blue Area Islamabad now costs Rs600, minibus operators have increased stop to stop fare by Rs3 from Rs35 to Rs38 per passenger. Moreover, motorcycle rickshaw operators have increased stop to stop fare by Rs5 per passenger from Rs35 to Rs40.
Passengers have voiced concerns, urging authorities to establish a proper monitoring system at bus terminals to regulate fare adjustments and ensure that the public is protected from unfair increases.
The secretary of the Regional Transport Authority has stated that strict action is being taken against transporters who impose excessive fare hikes beyond approved limits.
The fare from Islamabad to Muzaffarabad, Azad Jammu and Kashmir has been increased by Rs50 from Rs700 to Rs750. Bus fare from Islamabad to Neelum has increased from Rs1,500 to Rs1,750 and from Rawalpindi to Leepa Valley from Rs1,600 to Rs1,800.
Sources in PIA, while disclosing the airfares mentioned about significant changes in airfare from Islamabad to various international destinations over the months of May, June, and July, with notable increases following the federal budget announcement in June.
According to the data: Fares to Saudi Arabia (e.g., ISB-JED) surged from Rs165,482 in May to Rs163,795 in July, after dipping to Rs115,329 in June — marking a 42 per cent increase post-budget. Similarly, ISB-RUH dropped from Rs117,492 (May) to Rs61,174 (June), then rose to Rs131,266 in July — a 114 per cent spike post-budget.
For UAE destinations like ISB-DXB, the fare dropped from Rs131,125 (May) to Rs30,086 (June), before climbing to Rs84,957 (July) an 182 per cent increase over the June rate.
ISB-RUH saw a plunge from Rs142,535 (May) to Rs149,336 (June), followed by a rebound to Rs127,547 in July, up by 159 per cent. PIA officials attributed the June dip to off-peak seasonal travel and a temporary fare reduction ahead of the budget announcement.
However, post-budget tax adjustments and rising operational costs have driven fares back up in July.
The sources maintained that the government introduced a carbon levy on air travel, reportedly at the request of the International Monetary Fund (IMF) as part of broader fiscal and environmental reforms.
This levy, aimed at discouraging excessive carbon emissions and boosting non-tax revenue, has also impacted airline ticket prices. Industry insiders say the added burden is being passed on to passengers, particularly affecting routes to the Gulf and Middle East, which see high volumes of travel from Pakistani workers and families.
According to a spokesperson of PIA, international and domestic fares have been consistent during Jan-Jun due to macro-economic stability including fuel prices and exchange rate. However, there are natural adjustments in fares upward and downward due to change in demand/seasonality and fare offers from international and Pak-based competitors. Overall, there is no drastic change in fares.
The spokesperson added though, airline fuel is not regulated by OGRA, any changes in tax/levies regime do impact cost of fuel, same is adjusted in fares to the levels at which fares are easily absorbed in market. Since it is a recent development, an absolute outcome cannot be determined at this stage including change in pricing strategy and profitability, the PIA official maintained.
Copyright Business Recorder, 2025