Railways operating deficit touched Rs26,252.315 million

ISLAMABAD: The operating deficit of Pakistan Railways was increasing consecutively from last five years and has reached at Rs26,252.315 million during the year 2010-11.

According to the official data the operating deficit was Rs4,757.850 million during 2007-08, Rs12,840.997 million in 2008-09, Rs14,708.924 million in 2009-10 and touched the highest level of Rs26,252.315 million in 2010-11.

The ministry controlled 88 percent operating deficit in 2008-09, 44.7 per cent in 2008-09, 14.5 percent in 2009-10 and 78.5 percent in 2010-11.

Railways Minister, Haji Ghulam Ahmed Bilour said that Pakistan Railways needs locomotives to control deficit and make it a profit earning entity, adding that currently there is not freight train and the all the locomotives are engaged to run the passenger trains.

He said Pakistan Railways was paying Rs4.6 billion annually to State Bank of Pakistan under the head of interest on Rs40 billion borrowing.

He said Pakistan Railways revenue was declining consecutively from last three years, adding that it was Rs22 billion in year 2009, Rs18 billion in 2010 and Rs12 billion is estimated for the current fiscal year.

It seems difficult in current situation to achieve estimated Rs12 billion revenue for the current fiscal year, he remarked.

The Minister said continuous decline in revenue, increase in fares of passengers and freight and non availability of locomotives for freight resulted in non payment of salaries and pensions.

He said that currently 100 locomotives are required immediately to meet the demand of freight.

Copyright APP (Associated Press of Pakistan), 2011