Bangladesh railway cannot turn a profit despite increasing revenues

Bangladesh Railway has recorded a revenue increase of 221 crore taka for the 2025-26 fiscal year, though the state network continues to spend far more than it brings in.

On Sunday, the state operator released an official statement revealing that total earnings climbed to 2,066.38 crore taka in the latest financial year. This marks a clear rise from the 1,845 crore taka recorded during the previous twelve months.

However, total operational spending reached 3,955 crore taka over the same period. This money was spent on worker salaries, staff allowances, pensions, and the regular maintenance of train tracks and carriages.

The latest figures mean the organisation spent 1.91 taka for every single taka it earned. Whilst the figure shows a deficit, it represents a slight improvement from the previous year, when the spending-to-income ratio stood at 2.09.

Senior managers attributed the boost in earnings largely to the passenger sector. Travel tickets brought in an extra 256 crore taka compared to the previous financial year, showing strong public demand for rail travel.

In contrast, income from commercial freight transport dropped by 8.34 crore taka. Transport officials stated that a severe shortage of working engines hampered their ability to move goods across the country.

Other areas also saw mixed financial results. Earnings from trade licences and miscellaneous commercial activities fell by around 24.34 crore taka. On a positive note, income from property assets rose by 3 crore taka, while leasing out optical fibre communication cables generated an additional 11.52 crore taka.

The rail authority argued that its massive annual pension bill, which totals around 1,000 crore taka, should not be counted as a day-to-day running cost.

If pensions are removed from the equation, total spending drops to 2,955 crore taka. This alters the operational ratio to 1.43, meaning that ordinary non-pension costs still outpace total revenue by 43 per cent.

Network directors pointed out that passenger ticket fares have remained completely unchanged since 2016. Over the same ten-year period, the cost of repair parts, fuel, and imported equipment has surged due to shifting global currency exchange rates.

The state operator maintained that if ticket prices were adjusted to match inflation and the costs seen in rival transport sectors, the financial gap would shrink dramatically. Given these long-term public service obligations, officials stated it is unfair to label the railway as a failing business.