Islamabad, Oct 29: Pakistan Railways Seeks 130% Budget Hike for 1,000+ Bogies Import
When this suggestion was brought before the Central Development Working Party (CDWP), the Ministries of Finance and Planning strongly objected, and the decision was postponed.
Pakistan Railways With a full delivery anticipated by June 2026, Railways has purchased 292 of 820 freight wagons and 78 of 230 passenger coaches as of June 30. Instead of using the ministry’s Rs. 285 exchange rates, the Finance Ministry imposed an exchange rate of Rs. 278 per dollar after contesting its cost structure.
Long-term delays, cancellations of bids, and modifications related to the ML-1 upgrade under the China-Pakistan Economic Corridor (CPEC) have elevated expenses and liabilities, according to the Planning Ministry.
Over a five-year period, import and municipal levies have increased by 15%, which has also increased railway expenses. The Planning Commission asked PR to increase its operational effectiveness and income creation while denouncing its delays.
According to the Finance Ministry, PR’s subpar performance has cost it Rs. 55 billion in FY23 and reduced its market share to barely 20% of passenger and 4% of freight transportation. To support additional expenditures, the ministry suggested a business plan to increase PR’s national transportation share.
