Bangladesh Railway's revenue increased by Tk 2.21 billion in the 2025-26 fiscal year, but it continued to spend significantly more than it earned despite a modest improvement in its operating ratio.

According to a Bangladesh Railway press release issued on Sunday, it earned Tk 20.6638 billion in FY26, up from Tk 18.45 billion in the previous fiscal year.

Its total operating expenditure, including salaries, allowances, pensions and maintenance of tracks and rolling stock, stood at Tk 39.55 billion, resulting in an expenditure-to-income ratio of 1.91, an improvement from 2.09 in FY25.

The railway attributed the increase in revenue mainly to passenger services, which generated Tk 2.56 billion more than in the previous fiscal year.

However, freight income fell by Tk 83.4 million due to a shortage of locomotives, while earnings from the transport and commercial sector, covering bidding licences and other miscellaneous income, dropped by around Tk 243.4 million.

On the positive side, income from land and property assets rose by Tk 30 million, and leasing of optical fibre infrastructure brought in an additional Tk 115.2 million.

The railway authorities argued that their roughly Tk 10 billion annual pension expenditure should not be classified as an operating cost.

Excluding pension payments, total expenditure stands at Tk 29.55 million, bringing the operating ratio down to 1.43, meaning the railway's non-pension expenditure exceeds its income by 43 per cent.

Bangladesh Railway claimed that train fares have not been revised since 2016.

Meanwhile, costs for maintenance materials and imported goods, driven up by exchange rate fluctuations; staff salaries; pensions; and fuel prices have all continued to rise over the same period.

Had fares been rationally adjusted in line with prevailing costs in other transport sectors and current market prices, the gap between income and expenditure would have been narrowed significantly.

It maintained that, in light of these factors, it would be unfair to characterise Bangladesh Railway as a loss-making organisation.