Islamabad: It was highlighted that Pakistan Railways has significantly boosted its revenue (251%) over the past decade through extensive reforms. Minister for Parliamentary Affairs and Law and Justice Azam Nazeer provided this information while responding to a Senate inquiry regarding governmental measures to mitigate Pakistan Railways’ losses.
During the fiscal year 2022-23, Pakistan Railways earned Rs. 63.250 billion in revenue while receiving a Grant in Aid/subsidy of Rs. 47.5 billion from the Finance Division, totaling Rs. 110.8 billion. Although revenue growth has been notable, it has not fully met the operational requirements, primarily due to a substantial increase in pension obligations.
Around 67% of total expenditure is allocated to pay and pension benefits alone. Despite improved revenue, the burden of pensions has surged since 2016, mainly due to a revised Pension Policy/PM Package issued by the Finance Division in 2015. This has led to pending liabilities totaling Rs. 27.5 billion for commutation and other payments.
To address these challenges, Pakistan Railways has proposed transferring pension responsibilities and funding to the Finance Division. This move aims to alleviate the burden on Pakistan Railways and ensure adequate funds for operational activities.
The minister noted additional challenges faced by Pakistan Railways, including disruptions caused by massive floods in July and August 2022, which suspended train operations for two months and impacted revenue. Despite these difficulties, Pakistan Railways’ revenue continues to show an upward trend, with earnings of Rs. 40.1 billion in the first half of fiscal year 2023-24.
The minister refuted claims of a Rs. 55 billion loss in fiscal year 2022-23, attributing the improved revenue management system for enhancing revenue figures.
