Bangladesh Railway incurred an operating loss of Tk 18.89 billion (Tk 1,889.62 crore) in the 2025-26 fiscal year, as rising operating costs continued to outpace revenue growth despite higher earnings.

According to a press release issued on Sunday by Bangladesh Railway Director (Public Relations) Anisur Rahman, the state-owned transport operator generated Tk 20.66 billion (Tk 2,066.38 crore) in revenue during the fiscal year, while operating expenses reached Tk 39.55 billion (Tk 3,955 crore).

The railway’s revenue increased by more than Tk 2.21 billion from Tk 18.45 billion recorded in FY25, driven largely by stronger passenger transport earnings. Revenue from passenger services rose by Tk 2.56 billion compared with the previous fiscal year, reflecting a series of operational initiatives despite various challenges.

However, freight transport revenue declined by Tk 83.4 million due to a shortage of locomotives. Income from railway land increased by Tk 30 million, while leasing of optical fibre generated an additional Tk 115.2 million. On the other hand, revenue from transport and commercial activities, including vending licences, fell by around Tk 243.4 million.

Bangladesh Railway said its operating expenses include salaries and allowances for employees, pensions, and the maintenance of railway tracks and rolling stock. As a result, the operating ratio stood at 1.91 in FY26, improving from 2.09 in the previous fiscal year.

The railway authority argued that nearly Tk 10 billion is spent annually on pensions, which it believes should not be included in operating expenses. Excluding pension costs, the operating ratio improves to 1.43, although the organisation still recorded a deficit of Tk 8.89 billion.

The railway attributed the financial gap to subsidised passenger fares, noting that ticket prices have remained unchanged since 2016 despite significant increases in maintenance costs, import expenses, exchange rates, employee salaries, pensions and fuel prices.

It said that a rational adjustment of fares in line with market conditions and other transport services would help reduce the deficit. The authority also stressed that Bangladesh Railway should not be evaluated solely on the basis of financial losses, as it provides an essential public transport service across the country.