Bangladesh Railway earned Tk2,066.38 crore in the 2025–26 fiscal year, up Tk221 crore from the previous year, as higher passenger income helped narrow the state-run operator’s income-expenditure gap.
Official data showed that the railway’s revenue increased from Tk1,845 crore in FY2024–25 despite operational constraints, including a shortage of locomotives that affected freight services.
Passenger services accounted for most of the growth, generating Tk256 crore more than in the previous fiscal year.
Income from railway land rose by Tk3 crore, while revenue from leasing optical fibre networks increased by Tk11.52 crore.
Freight earnings, however, fell by Tk8.34 crore, mainly because of the locomotive shortage. Revenue from transport and commercial activities, including vending licences and miscellaneous sources, declined by a combined Tk24.34 crore.
Bangladesh Railway’s operating expenditure, covering salaries, pensions and maintenance of tracks and rolling stock, reached Tk3,955 crore in FY2025–26.
Its operating ratio improved to 1.91 from 2.09 a year earlier. This means the railway spent Tk1.91 for every Tk1 it earned, compared with Tk2.09 in the previous fiscal year.
Railway officials said pension payments significantly increased the reported operating costs. The organisation spends around Tk1,000 crore annually on pensions.
Excluding pension expenditure, its operating ratio would fall to 1.43, meaning the railway would spend Tk1.43 for every Tk1 of revenue.
Officials have also pointed to the prolonged freeze in passenger fares, which have remained unchanged since 2016 despite increases in fuel prices, maintenance costs and the cost of imported equipment amid fluctuations in the US dollar exchange rate.
They argued that Bangladesh Railway should not be judged solely as a loss-making organisation because it operates as a state-owned public service and provides relatively affordable transport across the country.
A rational adjustment of fares in line with market conditions and other modes of transport could substantially reduce the deficit, they said.
