The percentage of Pakistan Railways’ deficit as compared to revenue increased from 73.87 percent in 2017-18 to 97.68 percent in 2020-21, while income declined from Rs. 49.58 billion to Rs. 48.65 billion during this period.
This was revealed by Railways Ministry in a written response in the National Assembly here on Friday.
The percentage of the deficit as compared to revenue as of 30th June 2018, 2019, 2020, and 2021 is 73.87 percent, 60.11 percent 105.39 percent, and 97.68 percent. Pakistan Railways income was Rs. 49.576 billion in 2017-18, Rs. 54.514 billion in 2018-19, Rs. 47.588 billion in 2019-20, and Rs. 48.652 billion in 2020-21. The percentage of punctuality of trains for the period June 30, 2018, 2019, 2020, and 2021 was 71 percent, 70 percent, 63 percent, and 74 percent.
The Lower House was further informed that in pursuance of the policy of the Federal Government, Pakistan Railways has outsourced some of its trains under Public Private Policy (PPP). According to the policy decision given by the Railways Board Ministry of Railways, the bids more than the Railways earning will be accepted. The decision has been made to minimize the loss of Pakistan Railways by bridging the gap between earning and expenditure.
Under this policy Pakistan Railways has introduced outsourcing of commercial management of passenger and freight trains, luggage/brake vans, dining cars etc. Pakistan Railways is getting fixed amount per annum from these activates through private sector without any complicity.
It further informed that the private sector can earn more from the above-mentioned activities as compared to Pakistan Railways. In order to attract the customers, private sector can vary fares according to the market dynamics on daily basis whereas PR cannot adopt the same procedure due to policy constraints.
Similarly, the private sector can plug the leakages more effectively. Modern marketing techniques and provision of door-to-door (home delivery) facility have also helped the private sector in enhancing the earning.
It is pertinent to mention that only the commercial management of different activities has been outsourced to the private sector. Whereas the operation of all such activates is performed by the Pakistan Railways. Essential categories are the ones that are directly linked with the operation of PR. The recruitment made in recent years were to recoup the shortage of only essential categories to ensure smooth operation of PR.