Due to acute financial crisis, Pakistan Railways is delaying the project for laying Quetta-Zahidan track, while Iran has completed its part of the project and successfully laid the track upto Taftan. Both countries had recently decided that funds for this project could be raised together through Economic Co-operation Organisation or Islamic Development Bank, informed sources in the Railway Ministry told Business Recorder on Friday.
Sources said the railway link connecting Iran and Pakistan would help increase bilateral trade between the two neighbouring countries besides reducing the freight cost. Railways in spite of estimated profit of Rs 9309.880 million during FY08, will not carry out the ongoing development projects as the amount will be paid for debt servicing of the institution.
The non-development expenditure of PR for the year were estimated at Rs 28330.230 million whereas the revenue target was fixed as Rs 38196.308 million. The surplus amount of Rs 9309.880 million will be paid in debt servicing and the organisation is left with no money to continue the ongoing development activities.
According to data available to Business Recorder, out of total non-development expenditures Rs 28330.230 million, the Railways will spent Rs 3575.470 million on general administration, Rs 9068.425 million on repairs and maintenance, Rs 10842.430 million on operating expenses, Rs 4533.905 million on other expenses and Rs 380 million on improvement and welfare expenditure.
Railways has to take appropriate measures to bring its day-to-day expenditures to a reasonable level for making the organisation a profitable entity as major chunk of its revenue is being consumed by non-development expenditures.
After debt servicing, it is left with no revenue to initiate any development project or to continue the ongoing projects. Railways has completed the feasibility study for laying track between Peshawar, Kohat and Bannu, but due to lack of finance, the project is still in cold storage.
Due to lack of funds, Railways is not in a position to initiate the project, which will reduce 400-km travelling distance among these three stations, informed sources in the Railways Ministry told this scribe. Another project of vital importance is linking Gwadar with rest of the country, which will decrease transportation cost to the large extent for which Pakistan is trying to arrange funds from bilateral and multilateral donors.
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