In a controversial move, Pakistan Railways has substantially raised the Right of Way (ROW) charges for a single-track crossing to a staggering Rs. 3.8 million for a five-year period. This decision has garnered attention, especially in light of recent telecom policy reforms and a reduction in ROW charges for fiber broadband announced by Caretaker Federal IT Minister Dr. Umar Saif, aimed at propelling the country into a digital revolution.
Historically, telecom operators installing fiber broadband have paid Rs. 100,000 per track crossing for a 10-year period. In 2007, responding to the expanding fiber broadband network, Pakistan Railways increased the charges to Rs. 2.7 million for five years. According to regulations, ROW fees should be on a “no profit, no loss” basis, not for revenue generation by public authorities.
In 2022, the PTI-led government reduced crossing charges to Rs. 600,000 for a lifetime, supporting the telecom operators’ demand. However, the PDM government in May 2023 canceled this policy. On December 12, 2023, Pakistan Railways announced a substantial hike in track crossing charges to Rs. 3.8 million for five years for telecom operators, while cable TV operators continue to pay only Rs. 100 per year.
Wahaj Siraj, Vice Chairman of the Telecom Operators Association of Pakistan, criticized the move, stating that charging an exorbitant fee for a short stretch of fiber through state-owned land is unreasonable and unprecedented. This decision raises serious concerns within the telecom industry, particularly as the Special Facilitation Investment Council (SIFC), led by the Prime Minister and key members such as the Chief of Army Staff, is actively implementing reforms to support the IT and telecom sector.
