Losses of PIA, PSM, Railways surge to Rs705bn in 3 years

[mr42O]

ISLAMABAD: The losses incurred by three major public sector entities (PSEs) — the Pakistan International Airlines, Pakistan Railways and Pakistan Steel Mills — have surged to about Rs705 billion in three years despite continuous injection of funds into the organisations.

This is in addition to around Rs660bn debt piled up in the accounts of power sector companies, of which Rs348bn has been accumulated in three years, even though consumer tariffs have repeatedly been increased.

The revival of the loss-making PSEs was one of the central themes of a three-year economic reforms programme.

Put together, the cumulative losses incurred by the three PSEs and the power sector companies have increased to Rs1.365 trillion, which is more than the country’s consolidated annual development programme of Rs1.25 trillion for the current year.

This has been revealed by the International Monetary Fund (IMF) in its ‘scorecard’ of Pakistan’s structural reforms programme launched under its three-year Extended Fund Facility, which concluded on September 30.

The IMF also put on record that the losses incurred by the country’s natural gas sector increased to 11.5 per cent in three years, showing an increase of 1.4pc since the government joined the IMF programme in September 2013. In monetary terms, the annual loss of the natural gas system increased by about Rs6bn. The gas tariff was increased by 20pc during the period.

The IMF said the government promised to increase the tariff again in the current month.

The IMF said the cost of electricity delivered to consumers was increased by about 35pc to Rs11.9 per unit by increasing the base tariff and introducing a series of surcharges.

It said the total losses of the three PSEs stood at 1.7pc of GDP in 2012-13, but surged to 2.3pc of GDP at the end of fiscal year 2015-16. The GDP size has now increased considerably.

The IMF said that on the positive side the pace of accumulation of annual losses of PIA, PSM and PR declined in three years to 0.2pc of GDP or Rs61bn per year against Rs95bn or 0.4pc of GDP.

It said the consumer gas tariff was increased to Rs647 per unit against Rs540 per unit through gas infrastructure development cess (GIDC). It said the power sector payable arrears also increased from 2.2pc to 2.3pc of GDP.

This included Rs335bn arrears transferred to the Power Holding Company Limited. Excluding this, arrears at end of June this year were at 1.2pc of GDP (Rs321bn).

A major part of the power sector arrears were cleared in June and August 2013, the IMF said. “While arrears have re-accumulated, the pace of accumulation has been substantially reduced,” it said.

The IMF said that distribution losses in the power sector declined to 17.9pc from 18.9pc while the collection increased by almost 5pc to 92.6pc.

Also, the power sector subsidies dropped to 0.6pc of GDP from 2pc of GDP and outages for industrial sector dropped from nine hours to one hour per day.

Electricity outages for urban consumers dropped to five hours per day from eight hours in 2013.

Based on these outcomes, the IMF has stressed that restructuring and attracting private sector participation in ailing PSEs would be key to restoring their financial viability to reduce fiscal costs.

While planned privatisation transactions were scaled back early this year owing to political opposition and widespread strikes, the authorities reiterated their commitment to attracting private sector participation in the PSEs while continuing efforts to contain their losses.

The IMF noted that the relevant legislation required the government to keep majority shares and management control of PIA, but the government committed to attract private sector participation in the company and finalise the transaction structure for a minority sale by the end of the year.

In parallel, measures to reduce PIA’s financial and operating costs would continue to be implemented.

Secondly, following inconclusive discussions with a provincial government over transfer of PSM ownership, the government has resumed the privatisation process for the company and aims to conclude the bidding process by June 2017. The authorities will also continue to implement measures to limit PSM’s financial losses.

The IMF praised improvement in the Pakistan Railways’ revenue performance and the government’s commitment to move forward with its restructuring plan.

Published in Dawn, October 17th, 2016

http://www.dawn.com/news/1290493/losses-of-pia-psm-railways-surge-to-rs705bn-in-3-years

 

[Danish saleem]

brother,

its collective amount of last 8 years,!

 

[cleverrider]

 

[Emmie]

Nobody gives a rat's arse! Haters gonna hate, same pious families will continue rule Pakistan.

 

[Danish saleem]

Nobody gives a rat's arse! Haters gonna hate, same pious families will continue rule Pakistan.

these families elected via ballot box.

 

[Norwegian]

these families elected via ballot box.

So? People are electing the corrupt

 

[Danish saleem]

So? People are electing the corrupt

if someone is corrupt, collect the proof and present in Court, i think its the most honorable way for proving someone wrong.

 

[Norwegian]

if someone is corrupt, collect the proof and present in Court, i think its the most honorable way for proving someone wrong.

And if courts are bought by the corrupt what then?

 

[Danish saleem]

And if courts are bought by the corrupt what then?

system for choosing judges changed from last several years, not judges were nominated by judicial committee's not by corrupt.

 

[notorious_eagle]

if someone is corrupt, collect the proof and present in Court, i think its the most honorable way for proving someone wrong.

Wah, if only it was that easy. You must live in some foreign country.

Do name me a single person convicted by the courts for corruption. Pakistan happens to be one of the most corrupt countries in the world, and not a single big fish convicted by the courts. At the end of the day, prosecution is the job of the executive and the executive ensures that the case is so weak that the accused is freed. Best example is Zardari, where the prosecution filed such a weak case that the judge was forced to let him go.

On topic: One more good example of PML-N's good governance. This is what happens when the Prime Minister is only interested in milking the country, and is not at all concerned with governing. So much for the experienced team of PML-N, that they couldn't even fix these institutions because they installed their lackeys at the top job to engage in corruption.

 

[Emmie]

these families elected via ballot box.

I don't belong to Mars, neither you. I know how electoral system works out in Pakistan.

 

[notorious_eagle]

And if courts are bought by the corrupt what then?

At the end of the day, it is the job of the Executive to pursue the case and not the Judiciary. Best example is Zardari. The prosecution team presented such a weak case, that the Judge was forced to let Zardari go free. The prosecutor in fact submitted photocopies of the evidence and not the real documents, which an amateur lawyer knows that you should not do. Heck, so many of the documents that are shared in the media were not even presented by the prosecutor. Once Zardari was set free, Nawaz Sharif instead of dismissing the prosector for such a horrible job actually promoted him.

these families elected via ballot box.

Ballot box where more than 70% of the constituencies don't have Form 15's. The election result is declared on the results of the Form 15. Or the ballot box which when opened has trash inside it instead of actually ballots.

 

[Norwegian]

At the end of the day, it is the job of the Executive to pursue the case and not the Judiciary. Best example is Zardari. The prosecution team presented such a weak case, that the Judge was forced to let Zardari go free. The prosecutor in fact submitted photocopies of the evidence and not the real documents, which an amateur lawyer knows that you should not do. Heck, so many of the documents that are shared in the media were not even presented by the prosecutor. Once Zardari was set free, Nawaz Sharif instead of dismissing the prosector for such a horrible job actually promoted him.



Ballot box where more than 70% of the constituencies don't have Form 15's. The election result is declared on the results of the Form 15. Or the ballot box which when opened has trash inside it instead of actually ballots.

I am done with this country

 

[Danish saleem]

Wah, if only it was that easy. You must live in some foreign country.

Do name me a single person convicted by the courts for corruption. Pakistan happens to be one of the most corrupt countries in the world, and not a single big fish convicted by the courts. At the end of the day, prosecution is the job of the executive and the executive ensures that the case is so weak that the accused is freed. Best example is Zardari, where the prosecution filed such a weak case that the judge was forced to let him go.

On topic: One more good example of PML-N's good governance. This is what happens when the Prime Minister is only interested in milking the country, and is not at all concerned with governing. So much for the experienced team of PML-N, that they couldn't even fix these institutions because they installed their lackeys at the top job to engage in corruption.

brother,

i was voter and supporter of PTI, living in karachi, and the problem i faced in Karachi u not even imagine, no law and order, bhatta, extortion, target killing in just 5000 rupees.
Alhamdo lillah from last 3 years after operation started in 2013, my city is safe as any city of Pakistan, so credit must go to Present government, and Raheel sharif , who are very very clear in terms of terrorism.
Education helps in developing Human minds, and there should be a difference between illiterate and educated person.

Secondly about the topic, brother the amount which mentioned in thread is collective amount of last 8 years, that my point. i not have any thing to do with Nawaz or Imran khan, in next elections i saw performance and then vote, i never vote on the basis of blind hate and blind love.

At the end of the day, it is the job of the Executive to pursue the case and not the Judiciary. Best example is Zardari. The prosecution team presented such a weak case, that the Judge was forced to let Zardari go free. The prosecutor in fact submitted photocopies of the evidence and not the real documents, which an amateur lawyer knows that you should not do. Heck, so many of the documents that are shared in the media were not even presented by the prosecutor. Once Zardari was set free, Nawaz Sharif instead of dismissing the prosector for such a horrible job actually promoted him.



Ballot box where more than 70% of the constituencies don't have Form 15's. The election result is declared on the results of the Form 15. Or the ballot box which when opened has trash inside it instead of actually ballots.

brother,

these 70% constituencies also included the constituencies where PTI won, so its the failure of system, which we need to improve, and that system will never improved by sitting on the road, for that its need legislation ,amendment in laws, and that is only possible in sitting in a Parliament. which is never a agenda of PTI.

Question! do u think PTI took any improvement in Provincial Election commission?

My Answer. they don't even improve the Election system in their own Parties, and both the elections commission resigned charging leaders of PTI on rigging.