Just like the infamous national airline PIA, it seems the Pakistan Railways (PR) is also not far behind when it comes to losses.
For the fiscal year (FY) 2015-2016 Pakistan Railway suffered losses amounting to Rs. 28 billion. This is an increase in losses by 12.64% year on year despite statements being given by various officials about a possible turnaround for the service.
Total earnings for PR stood at Rs. 35.97 billion in FY 2015-16, up from Rs. 31.92 billion earned in the same period during the previous fiscal year.
Expenses also went up to Rs. 64.23 billion in FY 15-16 increasing from last year’s Rs. 57.03 billion.
These were the statistics provided by the CEO and financial advisor of Pakistan Railways to the concerned Ministry.
The deficit of Pakistan Railways currently stands at Rs. 28.3 billion and that’s not counting the interest and repayments of loans on capital and replacement account figures. The total deficit could rise even higher than the current amount.
The operating expenses decreased by 3% to 18.28 billion in 2015-16 from 18.77 billion in the fiscal year 2014-2015.”Other Revenue Expenditures” increased by 28% to Rs. 21.54 billion in FY 15-16 from Rs. 16.83 billion in FY 14-15.
Total passenger earnings, however, increased to Rs. 20.39 billion from previous year’s Rs. 17.45 billion.
Transportation of goods via freight operations also saw a rise of almost 28% to Rs. 10.59 billion, up from Rs. 8.25 billion during the same period last year.
The sundry section which includes PR’s commercial, marketing, land and property department decreased by 40% to Rs 2.59 billion from last year’s Rs. 4.3 billion.
Overall the increasing losses of state owned entities like Pakistan Railway, PIA and others increases the burden on the national budget every year, with the taxpayers footing the bill of these enterprises year after year.
Via Express Tribune