Pakistan Railways hikes right-of-way charges for telcos

ISLAMABAD: Pakistan Railways has significantly raised the Right of Way (ROW) charges for a single-track crossing to Rs. 3.8 million for five years which would help the department to generate more revenue.

Historically, Pakistan Railways charged Rs. 100,000 per track crossing for 10 years when telecom operators installed fiber broadband, the state news agency reported.

In 2007, they said the charges were increased to Rs. 2.7 million for five years, as the use of fiber broadband expanded.

However, in 2022, the PTI-led government reduced the crossing charges to Rs. 600,000 per crossing for a lifetime to promote fiber broadband.

They said that in contrast, cable TV operators continue to pay only Rs. 100 per year.

It is pertinent to mention here that Pakistan Railways has offered to lay fibre optics cables along the railway tracks across the country, in a joint venture with private sector investors to generate revenue for the department.

Pakistan Railways has around 7,791 kilometers railway network across the country which will not only help the department to improve its financial condition but also attract investors to invest.

The matter also came under discussion during a meeting of the Economic Coordination Committee (ECC), in which the Ministry of Railways pointed out that the department was offering an excellent opportunity for laying fibre optics cables along its track for digital connectivity across the county.

During the meeting, Pakistan Railways informed that it has a network of 7,791 km, which passes through high-density population areas and connects major cities in the four provinces.

With the average assets and hefty pension bills, Pakistan Railways contended, but its financial health was deteriorating, and unless new revenue sources were identified, the reliance on government subsidy would keep on growing.

Pakistan Railways was of the view that right-of-way charges on fibre optics cables would offer the department a decent source of earnings.