'Railways operating under serious limitations, constraints'

A forensic audit submitted before the Supreme Court of Pakistan on Tuesday said that Pakistan Railways has been operating under serious limitations and constraints making losses than revenue. The Chief Justice of Pakistan expressing serious concern over the audit report directed the railways secretary to appear before the court to file a rejoinder to the report.
The CJ also summoned former railways minister Khwaja Saad Rafiq on next hearing to be fixed by the office later. The report submitted by AF Ferguson & Co showed that the railways incurred losses to the tune of Rs30 billion during the financial years 2012-13, Rs32 billion in 2013-14, Rs27 billion in 2014-15, Rs26 billion in 2015-16 and Rs40 billion in 2016-17. While the revenue made by the railways for the same period was Rs18 billion, Rs22 billion, Rs31 billion and Rs36 billion and Rs40 billion, respectively.
Chief Justice Saqib Nisar had directed the audit of the department during a hearing in April last. The report said that during the five years the increase in revenues had been more offset by the huge jump in expenditure and the loss worsened from Rs30 billion in 2012-13 to Rs40 billion in 2016-17. "It is our view that an annual loss in excess of Rs40 billion is not sustainable," the audit firm said in its report.
The report further revealed that the 70 percent of the revenue had been used for the payment of pension to retired employees. It said the railways had been working under constraints including quality of age and age of tracks, quality and age of locomotives/coaches and quality and efficacy of telecommunication system.
It said the railways in its present form will face challenges to sustainable deliver its services and match increasing costs. "It is essential that the organization be run with proper planning and in an efficient manner in order to ensure that financial support is minimized and operations are sustainable," the report said and added that the present situation of the railways was a result of poor planning over the last 70 years.