Flash_Ninja
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It is like water supply service, you dont give it to private companies. Though it should not run into deep loss but neither should it be crassly commercialized. will a private company lay tracks into remote parts where they wont make profit but it is absolutely needed by the people of the region.
If they are given control over fares or service availability then yeah they will build, although its unlikely they will lay tracks in remote areas anyway without government subsidies.
A simple increase in railway fares will ground your economy or tilt the political balance during elections.
A company cant just increase fares without public backlash, the Chinese have no interest in Pakistans internal affairs, but if they did then rapidly increasing prices would be a good way to kill off customer base.