Bangladesh Railways, once a profitable company, has been facing increasing losses and a decline in institutional capacity. Recent reports reveal losses of Tk 2,100 crores in the fiscal year 2020-21, and the operating ratio has risen to 277.83 percent. Experts attribute this situation to institutional inefficiency and corruption, hindering proper resource and manpower utilization. The Ministry of Railways acknowledges the issue, emphasizing the need to tackle corruption, improve resource utilization, and enhance passenger service quality to reduce losses. The operating ratio, a measure of management efficiency, highlights the decline from 95.9 percent in 1998-99 to the current 277.83 percent.
Despite significant investments in the railway sector over the past decades, including 83 projects costing Tk 20,666 crore, the company has experienced increasing losses. Currently, there are 34 ongoing projects with an estimated cost of Tk 1,41,505 crore. However, these expenditures have failed to make the company profitable, and the losses continue to rise. Experts believe that substantial investments have not significantly improved the quality of railways.
Experts suggest focusing on strategic measures, increasing administrative efficiency, and utilizing the railway’s vast land holdings for better goods transportation. The Railways Minister remains optimistic about the railway’s future, citing improvements in schedules, infrastructure, and services.
Source for more details:
