Home »Business and Economy » Pakistan » PR losses may jump to around Rs 43 billion by end 2017-2018

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  • Mar 17th, 2018
  • Comments Off on PR losses may jump to around Rs 43 billion by end 2017-2018
Pakistan Railways losses were Rs 25 billion in the first eight months of the current fiscal year (July-February) but are projected to cross the 2016-17 total of Rs 40 billion, while total revenue has increased, sources revealed to Business Recorder. PR losses were Rs 30.50 billion in 2012-13, Rs 32.52 in 2013-14, Rs 27.24 billion in 2014-15, Rs 26.99 billion in 2015-16 and Rs 40.7 billion in 2016-17. However sources said that the losses are expected to reach around Rs 43 billion by end 2017-18.

According to documents available with business Recorder, PR revenue was Rs 18.078 billion in 2012-13, Rs 22.805 billion in 2013-14, Rs 31.927 billion in 2014-15, Rs 36.58 billion in 2015-16 and Rs 40.083 billion in 2016-17. But at the same, subsidies increased every year as it was Rs 33.35 in 2012-13, Rs 33.6 billion in 2013-14, Rs 37 billion in 2014-15, Rs 37 billion in 2015-16, Rs 37 billion in 2016-17 and Rs 40 billion to be provided in 2017-18.

PR officials project Rs 50 billion as revenue by the end of 2017-18 due to timely budgetary releases matching demand that enabled PR to meet its financing requirements for developing infrastructure, procuring locomotives and improving other services. The government earmarked Rs 42.9 billion under the Public Sector Development Programme (PSDP) for the current fiscal year 2017-18 of which Rs 18.5 billion has been released so far.

Pakistan Railways revenue was Rs 18 billion in 2012-13 which would cross Rs 50 billion by 2017-18, but at the same time Railways expenditure was Rs 48.58 billion in 2012-13 which reached Rs 80.93 billion 2016-17. Officials attributed the increase in Railways revenue to the increase in the number of locomotives, introduction of new freight and passenger trains like Green Line, Parcel Express and trains' punctuality.

Out of the total budget of PR amounting to Rs 90 billion for current financial year 2017-18 (consisting of Rs 50 billion revenue receipts and Rs 40 billion subsidy/financial assistance), funds to the tune of Rs 55.825 billion are to be consumed on salary and pension only. The loss can be controlled to some extent by generating additional revenue receipts and minimizing expenditure not directly related to train operations like TA/DA and utilities. However, a huge chunk of Rs 55.825 billion is likely to be spent on mandatory payments of salary and pension. This expenditure, which is 62% approximately of the total revenue budget of Rs 90 billion, cannot be controlled. Of the remaining Rs 34.175 billion, a sizeable sum of Rs 13.375 billion has been allocated for operational fuel during current 2017-2018. This expenditure also is beyond its control as already many upward revisions in the prices of fuel have taken place in the current financial year.

Sources said that even passenger coaches/wagons were not being repaired as per requirement due to less allocation of funds before June, 2013. However, the position substantially improved as tangible steps were taken by the present government through allocation of additional funds for repair & up-gradation / refurbishment of coaches. As a result, the availability of operational coaches has increased from 972 in 2013 to 1248 due to dedicated efforts of the management and increased spending on up-gradation of coaches.

PR has embarked upon modernization and capacity expansion programme under which transportation capacity of PR is being increased by employing higher speed and higher payload trains. Focus has shifted towards freight sector which is a profitable venture. In June 2013, 80 percent of revenue came from passenger and only 11 percent from freight whereas in June 2017, 55 percent revenue was from passenger and 31 percent from freight.

For the first time 55 new freight specific locomotives of 4000 to 4500 HP have been added to the existing fleet. The newly inducted locomotives improved the share of freight earnings. Introduction of new passenger reservation system including e-ticketing for passenger and outsourcing of commercial management of passenger trains under Public Private Partnership (PPP) also resulted in generating additional revenue.

Terminal facilities are being improved by introducing modern loading/ unloading facilities to curtail loading / un-loading time. As a result of these initiatives 12 freight trains are now originating from Karachi Port against only one train per day in 2013.

Officials claimed that punctuality of passenger trains increased from 42 percent in 2013 to around 70 percent in 2016-17 and in some areas around 90 percent. Further 1055 acres of land has so far been retrieved from encroachers which was 3125 acres as on June 2013.

Copyright Business Recorder, 2018


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