Pakistan Railway Posts Rs. 28 Billion in Losses in One Year

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.

Expenses

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.

Earnings

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

A techie, Overwatch and Street Fighter enthusiast, and Sub Editor at ProPakistani.


  • Farhan Nawazish

    It cant be turned to profit within 2-3 years. With more locomotives adding every year and rising profits it will take atleast 5-7 years for breakeven

    • Pakistani

      Well Farhan sb on paper it might be right. But once the purchase of the locomotive shall be made likewise the break even shall not be achieved let say in three to four years at least. Until and unless they cut down their left right expenses like from minister to lower level expensive vehicles not be issued. Only they should be issued to those ministries which are profitable. Further fuel and other perks should be stop.

      Frankly specking everyone in the Government sector is having joy rode.

      • Nisa Sarfaraz

        i pray for progress to Pro Pakistani……………………….Aamin

  • Raja Maja

    Masha Allah, i pray same progress to Pro Pakistani………………..Aamir Atta

  • Omar

    Why do we even have a Railway Ministry? Is it the job of the elected Government to run trains? Why can we not have Railways running as an independent organization, with professionals and an independent CEO reporting to a board (or committee) of MNAs. Or privatize railways completely and introduce other private companies to run their trains as well. (Just like the Telco sector).

    Why are my hard earned taxes being pumped into this loss making organization? Surely we can use these funds for better things instead (health, education, etc)

    • Shahid Saleem

      Oh, the old argument. “Why spend public funds on [THING] when it could be spent on health, education, etc etc”
      Well the fact of the matter is if the money isn’t spent on railways it won’t be spent on anything.

    • Nisa Sarfaraz

      PAKISTAN RAILWAYS is making progress day by day .I appreciate & think that things are going to be positive,
      GOD BLESS PAKISTAN RAILWAYS AAAMEEN
      BEST REGARDS ,

  • Naveed Saleem

    Recently i travelled in Pak Business Express from Lahore to Karachi with family and the ticket checker came to check the tickets when we crossed Hyd…

    • Shahid Saleem

      Go on…

  • Kashif Surhio

    taraqi….
    Railway ko theek kar liya, ab rent py jahaz le kar PIA ko bhi theek karaingy

  • EcoCo

    Don’t understand how this is a technology related news…………..

  • RT

    Audit karao.