Dhaka’s MRT Line-6 is carrying around 400,000 passengers daily during peak hours, showing high demand, but the metro’s fare income is falling short of covering its loan repayments. Last fiscal year, fare revenue was approximately Tk 4 billion, but the annual loan payments due between 2025 and 2031 range from Tk 4.65 billion to Tk 7.4 billion, creating a significant financial gap. The government waived VAT on tickets to ease the burden on passengers, and fare increases remain limited to keep the service affordable. However, this makes it challenging for the metro to generate enough money to repay its debts. Currently, trains run every 8 to 12 minutes during busy times, rather than the planned 3.5-minute intervals, and services stop after 10 pm, which reduces opportunities to increase revenue. Experts have suggested possible ways to boost income, including extending service hours, developing parking facilities near stations, and leasing commercial spaces inside metro premises. The metro began repaying loans in June 2023 after a ten-year grace period, with small repayments already made, but larger payments are expected soon. Over the coming years, about Tk 37 billion will be required to repay loans, averaging roughly Tk 7.4 billion per year, putting pressure on the system’s finances. The full MRT project cost stands at around Tk 334 billion, with nearly 60 percent funded by loans from the Japan International Cooperation Agency (JICA). Even with ticket sales reaching Tk 7 billion a year, recouping construction costs would require over 50 years, particularly due to rising maintenance and operational costs. Currently, annual operating expenses, including salaries and electricity, already surpass Tk 1 billion. Starting next year, the Dhaka Mass Transit Company Limited (DMTCL) will take over equipment maintenance, which is expected to double maintenance costs and reduce any remaining profits. The government plans to build five more metro lines to expand the network, but experts warn that the financial challenges seen with MRT Line-6 might repeat. Elevated lines like MRT-6 serve densely populated areas and attract many riders, while upcoming underground routes will be more expensive to build and may generate less revenue. Balancing ambitious expansion with realistic financial planning will be critical to ensure the metro system’s long-term sustainability and smooth operation as Dhaka’s public transit evolves.
