Islamabad, Sep 29: Pakistan Railways Achieves ‘Improved Operation Ratio’ with 98 Trains Running Daily. A successful reform strategy that prioritized cost reduction, optimizing train loads, outsourcing the commercial operation of passenger and freight trains, and profiting on the freight market, Pakistan Railways has achieved “improved operation ratio.”
According to a senior Ministry of Railways official who spoke with APP, “Pakistan Railways (PR) is currently running 98 daily passenger services on different routes across the country.” According to him, body corporate is connected to the term profit or loss. Any railroad’s operating ratio is used to calculate its profitability.
According to the official, Pakistan Railways was able to attain an operating ratio of roughly 98 percent for the fiscal year 2023–2024. Any railroad running at a percentage lower than 100 percent is deemed financially feasible.
According to him, Pakistan Railways has skewed expenses since it operates 57% of its passenger trains under Public Service Obligation (PSO) to meet the transportation needs of many people living in distant locations, meaning that it must pay for all of these trains’ operational expenses.
According to him, Pakistan Railways’ ability to maintain its financial stability is further hampered by its obligation to provide public services in isolated and underserved areas without receiving the corresponding subsidies.
In response to a query, he stated that just three categories of expenses regular salary, pensions, and operational fuel (HSD) account for roughly 89 percent of the overall cost. This means that only 11% of the budget is allocated for utilities and the upkeep and repair of the company’s operating assets.
The official added that Pakistan Railways must adhere to the Federal Government’s pay and pension plans, citing pensions’ exponential expansion as a fundamental challenge that has negatively impacted the company’s profitability.
According to him, Pakistan Railways pays for all of its operational costs, such as salaries and fuel, out of its earnings, with the exception of pensions, which are funded by yearly aid funds from the federal government. Given its stated stance, Pakistan Railways is not a business that makes a loss.
