Pakistan Railways will miss the revenue target of Rs 58 billion set for the current financial year against Rs 53 billion for the same period of last year as it is incurring loss of around Rs 1 billion each week due to the lockdown, it is learnt.

Official sources revealed to Business Recorder that Railways had suffered a loss of around Rs 7 billion so far due to the lockdown as passenger trains were suspended.

Railways' deficit is likely to widen to Rs 45 billion, if the lockdown is further extended, the sources added. The government had set revenue target of Rs 58 billion for the railways for the current financial year against Rs 53 billion for the same period last year. However, owing to the Covid-19 outbreak in the country, all passenger trains are suspended and the revenue target would be missed.

Railways, despite getting a subsidy of Rs 39 billion in the budget (2019-2020), has demanded around Rs 8 billion additional to cater pension, fuel and utilities' liabilities in the current fiscal year.

Fearing unrest due to inability in clearing pension liabilities, a summary for grant of Rs 4.1 billion was sent to the Finance Ministry. The government approved the budget estimates 2019-2020 to the tune of Rs 97 billion for Pakistan Railways including Rs 58 billion revenue receipts and Rs 39 billion.

In addition, Rs100 million were allocated for renovation of railways police buildings to be financed by the American Embassy, which make the allocation to the tune of Rs 97.1 billion, said a senior Railways official.

Railways is facing financial crunch due to increase in pension, expenses, fuel oil and increase in unit rate electricity. Due to the policy of liberalisation of pension rules adopted Jan 01, 2015, and decision for restoration of commuted value of pension 01-07-2015, the burden on Railways finances is continuously increasing.

It has been estimated that additional budget of Rs 4.170 billion will be required under the head "employees' retirement benefits-pension during 2019-2020. Pakistan Railways is a bulk purchase client of distribution companies over the country.

The electricity unit rates have been increased from Rs 20.12/unit to Rs 26.66/unit during the current financial year so far. Additional budget of Rs 1.224 billion will be required during the current financial year, the official added.