Pakistan Railways (PR) surpassed the revenue target of Rs 24 billion for the first three quarters of the current financial year (2015-16) and reduced losses by about one billion rupees, mainly because of inducting new/repaired locomotives and increasing the number of freight trains. Official sources revealed to Business Recorder that the turn around of Pakistan Railways was made possible due to good budgetary allocations as well as timely releases which helped meet PR financing requirements for developing infrastructure, procuring locomotives and improving other services.
Government earmarked Rs 39.57 billion under the Public Sector Development Programme (PSDP-2014-15) which was released. For the current financial year Rs 41 billion has been earmarked while Rs 13.3 billion has so far been released to Pakistan Railways. One of the main reasons behind the timely release of funds is the proactive role of Railways Minister Khwaja Saad Rafique, who reportedly sought and got Prime Minister' direct help and intervention in this regard, sources added.
The funds were utilised for induction of new/repaired locomotives, increasing the number of freight trains, upgrading stations, improvement in services which attracted passengers back to this relatively cheaper mode of transportation resulting in increasing revenue. PR deficit declined from Rs 37 billion in 2013-14 to Rs 27 billion in 2014-15; however sources claimed that it would be around Rs 24 billion by the end of current financial year (2015-16).
PR revenue increased from Rs 18 billion in 2013-14 to Rs 32 billion in 2014-15. Government has set revenue target of Rs 32 billion for 2015-16, however PR expects to generate about Rs 36 billion as it has already achieved over Rs 25 billion to date, mainly because of introduction new freight and passenger trains like Green Line and Parcel Express.
Earnings from freight trains in 2012-13 was Rs 1.529 billion, Rs 3.557 billion (increase of 79 percent) in 2013-14, Rs 8.346 billion (134 percent increase) in 2014-2015, while PR is expecting to generate more than Rs 12 billion revenue during the current financial year as it has already generated over Rs 7.5 billion.
At present PR is operating 60 freight trains at an average per day, including 10 trains ex Karachi port on daily basis compared with almost eight trains during the year 2013. Sources said that PR has so far got vacated over 3,498 acres of its land from encroachers in a period of three years and through its optimal commercial use through short-term leasing, generated Rs 4.194 billion.
Currently PR has a fleet of 443 locomotives out of which 280 are operational including 80 locally rehabilitated and 63 procured during last three years while 163 locomotives are non-operational. PR is upgrading waiting halls in 16 major stations initially by equipping them with facilities like air-conditioners, internet and television.
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