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Reformed Pakistan railways helps increase revenue

Published on 4th Apr, Edition 14, 2016


Pakistan Railways has always remained ahead of all in the nationwide sport activities and keeping that in view it has been planned to raise sports budget for the department from the FY2016-17. Currently the players are rewarded with a gold medal and cash prize of Rs10,000 which would be increased to Rs50,000.

China-Pakistan Economic Corridor (CPEC) would also assist develop transportation system of Pakistan. It is also revealed that revenue of Pakistan Railways has boosted from Rs18 billion to 35.181 billion as a result of steps taken by the Government of Pakistan. It is also said that 11 Railway stations counting that of Bahawalpur are being updated. Experts also said that eight railway stations including Karachi Cantt and Havelian would also be updated.

Pakistan Airways is being introduced to produce an atmosphere of competition. The cash-starved Pakistan Railways earned more and without taking into consideration its financial health spent further during the first half of the ongoing fiscal as against to the corresponding period of previous year. The Pakistan Railways had a shortfall of Rs11.46 billion in the first half of FY2014-15 which increased to Rs14.13 billion in the corresponding period of FY2015-16.

From July 1 to December 31, 2014, the Pakistan Railways earned Rs14.90 billion and spent Rs26.35 billion while from July 1 to December 31, 2015, the earnings remained Rs17.58 billion and expenses Rs31.71 billion. The expense facts do not include interest on international loans and the Rs40 billion over draft drawn from the State Bank of Pakistan (SBP), appropriation to depreciation reserve fund besides repayment of overseas loans on replacement and capital accounts.


Improvement and welfare besides other revenue expenditures constituted a key chunk of investing with the former growing from Rs4.7 billion during FY2014-15 to Rs34.42 billion during FY2015-16 and the latter from Rs8.12 billion to Rs12.10 billion. The general admin cost has gone up from Rs3.70 billion to Rs4.72 billion.

Interestingly, operating expenses declined from Rs8.67 billion to Rs8.46 billion while maintenance and repair spending increased from Rs5.84 billion to Rs6.38 billion. On the revenue side, the Pakistan Railways earned more during FY2015-16 than the same period of last year. By transporting more freight and goods, the Pakistan Railways earned Rs1.27 billion more — from Rs3.75 billion during FY2014-15 to Rs5.03 billion during FY2015-16; from passengers it earned Rs2.05 billion more — from Rs8.18 billion to Rs10.24 billion; in other coaching sector the earning was Rs 140.045 million more — from Rs559.672 million to Rs 699.717 million while from military traffic the earnings were Rs77.232 million more — from Rs360.972 million to Rs438.204 million.

No doubt the government is aiming to improve the financial position and services of the Pakistan Railways like passenger and freight train operations.


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