Pakistan Railways' deficit remained Rs 24.360 billion during the first nine months (July-March) of 2018-19 against Rs 24.418 billion during the same period of the last financial year (2017-18), registering a decrease of Rs 0.058 billion (0.24%).
Official sources revealed to Business Recorder that Pakistan Railways has earned Rs 39.010 billion up to March 2019 from operational activities, which are Rs 3.706 billion more than the revenue i.e. Rs 35.304 billion earned during the same period of last financial year.
Despite increase in expenditure (compared with the same period of last financial year) on account of pays (Rs 1.207 billion), pension (Rs 0.468 billion) and fuel (Rs 2.729 billion), the deficit of the Pakistan Railways is Rs 24.360 billion up to March 2019 against the deficit of Rs 24.418 billion during the same period of last financial year (2017-18), registering decrease of Rs 0.058 billion (0.24%). Sources maintained that the railways deficit is likely to cross Rs 36 billion by the end of current fiscal year.
The railway' deficit was reduced from Rs 37 billion in 2013-14 to Rs 27 billion in 2014-15, as claimed by the former Railways Minister Khawaja Saad Rafique, but later it resurged and was Rs 37 billion during the fiscal year 2017-18.
Sources said that several steps have been taken to improve financial position of the Pakistan Railways. The Pakistan Railways has started 24 new trains with the same rolling stocks and human resources. The introduction of trains tracking system has contributed in reducing the fuel consumption by 1.5 million litres. However, sources revealed that the government has decided outsourcing of commercial management of the newly-introduced trains to improve their financial viability. Most of new trains are operating around 70 percent capacity which increases up to 100 percent on weekends.
The railways revenue increased from Rs 18 billion in 2012-13 to Rs 50 billion in 2017-18 i.e. by 175 percent, mainly because of increasing the number of freight trains. Freight traffic had reduced to less than one train per day from the port in 2013, but by end 2017-18, the number reached 12. The freight sector revenue which was Rs 1.93 billion in 2012-13 increased to Rs 20 billion by end of 2017-18. The carriage capacity also increased from 1.016 million tonnes to 7.73 million tonnes in the last five years.
The incumbent government is mainly focusing on increasing the number of passenger trains which is considered as the main source for increase in operational expenditures, sources added.
Federal Minister for Railways Sheikh Rashid Ahmad has also formed a task force on freight sector to turn around the loss-making entity by enhancing revenue from the sector to Rs 25 billion by end 2018-19 against Rs 20 billion in 2017-18.
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