A.Rafay
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ISLAMABAD: The government has taken appropriate measures to control losses of Pakistan Railways by putting it on self-sustained bases due to which PR generated revenue of Rs 1.40 billion from July to December of fiscal year 2012-13, which is over and above the revenue generated during the corresponding period of previous financial year.
An official in the Ministry of PR said during the last four years the PR was able to save an amount of approximately Rs 4 billion per annum. It was hoped that this saving would continue during the next two financial years.
The Ministry of PR registered an overdraft of Rs 4.6 billion with State Bank of Pakistan (SBP) during the fiscal year 2009-10, but after that no overdraft has been taken so far in two-and-a-half-year. The official further said that the subsidy, which covered the expenditures of salary, pension, fuel, electricity, materials etc prior to FY 2011-12, is now being taken to defray the expenses of salary and pension only. The other operating expenses are being met out of railways revenue receipts.
Foreign debt servicing has partially been taken over by Economic Affairs Division and for the remaining portion no deduction at source is being made by the Finance Division. Train operations are presently being run within generated revenue as only economically viable trains are being run. Only the burden of salary and pension is being provided by the federal government, the officials maintained.
The government has also taken various steps to control losses of PR. The official said for meeting the present crises, PR is procuring up to 275 new locomotives and repairing old ones through various sources.
Railways has involved private sector to participate in different activities of PR like rehabilitation of ageing locomotives, development of dry ports, commercial management of passenger trains etc.
Through track access regime, private sector has been invited to operate freight trains on PR infrastructure on payment of track access charges to PR. The idle capacity available with PR will be utilised and additional revenue for PR will also be generated.
Doubling of track between Karachi and Lahore will be completed by December 2013, providing additional capacity to run more trains, the officials maintained. Installation of modern signaling system is in progress, which will facilitate in smooth train operations.
About main reasons of losses to PR, the official said less availability of locomotives due to deferred maintenance of old fleet on account of paucity of funds has badly affected passenger and freight train operations, the main source of earning for PR.
PR is a public service entity and does not operate purely on commercial lines. It has to keep operative some un-remunerative and un-economical routes in larger public interest.
Increase in salaries of government employees, and relief provided to pensioners has added to the financial burden. Increase in fuel, gas and electricity cost has also contributed to rising deficit.
Damages to railways assets worth Rs 6.73 billion due to floods of FY 2010-11 is another contributory reason causing losses.
Daily Times - Leading News Resource of Pakistan
An official in the Ministry of PR said during the last four years the PR was able to save an amount of approximately Rs 4 billion per annum. It was hoped that this saving would continue during the next two financial years.
The Ministry of PR registered an overdraft of Rs 4.6 billion with State Bank of Pakistan (SBP) during the fiscal year 2009-10, but after that no overdraft has been taken so far in two-and-a-half-year. The official further said that the subsidy, which covered the expenditures of salary, pension, fuel, electricity, materials etc prior to FY 2011-12, is now being taken to defray the expenses of salary and pension only. The other operating expenses are being met out of railways revenue receipts.
Foreign debt servicing has partially been taken over by Economic Affairs Division and for the remaining portion no deduction at source is being made by the Finance Division. Train operations are presently being run within generated revenue as only economically viable trains are being run. Only the burden of salary and pension is being provided by the federal government, the officials maintained.
The government has also taken various steps to control losses of PR. The official said for meeting the present crises, PR is procuring up to 275 new locomotives and repairing old ones through various sources.
Railways has involved private sector to participate in different activities of PR like rehabilitation of ageing locomotives, development of dry ports, commercial management of passenger trains etc.
Through track access regime, private sector has been invited to operate freight trains on PR infrastructure on payment of track access charges to PR. The idle capacity available with PR will be utilised and additional revenue for PR will also be generated.
Doubling of track between Karachi and Lahore will be completed by December 2013, providing additional capacity to run more trains, the officials maintained. Installation of modern signaling system is in progress, which will facilitate in smooth train operations.
About main reasons of losses to PR, the official said less availability of locomotives due to deferred maintenance of old fleet on account of paucity of funds has badly affected passenger and freight train operations, the main source of earning for PR.
PR is a public service entity and does not operate purely on commercial lines. It has to keep operative some un-remunerative and un-economical routes in larger public interest.
Increase in salaries of government employees, and relief provided to pensioners has added to the financial burden. Increase in fuel, gas and electricity cost has also contributed to rising deficit.
Damages to railways assets worth Rs 6.73 billion due to floods of FY 2010-11 is another contributory reason causing losses.
Daily Times - Leading News Resource of Pakistan
